“Our company isn’t missing Group Retro Refunds. They were included in our Billion Back dividends.”
Not so fast. While it sounds reasonable, and it’s definitely what Ohio BWC would like you to think, it isn’t technically true.
Imagine you go to the store and buy a few items, and later realize you don’t need one of them. You go to the store to return it, anticipating a refund for the $20 you spent on it. The store clerk tells you, “We can’t refund you - but the good news is, we just sent out a $30 coupon to all of our customers!” The clerk tries to convince you that you’re actually coming out ahead, because the coupon is worth more than your refund would have been. Why wouldn’t you get your refund and the coupon? After all, every customer got the coupon, regardless of whether or not they returned anything. Are you going to keep shopping at that store?
If you’re like most shoppers, you’d be seeing red, and vow to never shop there again. Ohio BWC made this same argument to Ohio employers regarding two years of missing Group Retro refunds. They provided “Billion Back” dividends equal to 100% of premiums for 2018 and 2019, and chose not to pay out Group Retro refunds for the same policy years. The refunds for Group Retro come from a different fund than the Billion Back dividends. Therefore, employers who participated in Group Retro during 2018 and 2019 should have received both their dividends totaling 100% of premium and their Group Retro rebates. These businesses didn’t sign any kind of acknowledgement that if BWC decided to distribute dividends, they would forego their Group Retro earnings. Group Retro refunds were still distributed in the many other years that dividends have been issued. BWC stated that they did not see any reason that a company should receive more back than they paid in premiums, that all employers were “made whole” by the dividends.
Spooner is the only TPA to go to bat for Ohio employers and these missing refunds. We explain our position in detail here, and welcome you to reach out to us for updates or additional information.
