News and Updates
Category: Ohio BWC
August BWC Update: Program and Premium Changes for the Year Ahead
Ohio BWC will be making some changes for the 2024 policy year (beginning 7/1/24), some of which may have a small advantage for certain policyholders. Employers will still be subsidizing BWC’s administrative fund as they always have, but House Budget Bill 31 will change how the money is accounted for. Right now, state fund employers are paying base rates plus 29.01%, and that percentage is an administrative fee that goes into the fund. In the future, the admin fee will be fully baked into the base rates, resulting in rates that are roughly 20% higher. All told, employers shouldn’t see a huge difference in amounts paid to BWC. This will apply to both public and private employers, beginning on their respective 2024 policy year start dates. Another change will allow for potentially better refunds from post-policy year savings programs, like Group Retro, Safety Council, etc. In prior years, those rebates were calculated based on a percentage of “standard premium” – in other words, premiums before BWC’s 29% admin fee was tacked on. If an employer paid $50,000 in annual premium to BWC, only $35,500 if it was counted as premium that they’d be rebated on. Program credits and refunds will begin using full premium in 2024, instead of peeling off the administrative portion of premium when calculating refunds and credits. The premium dollars going into Retro consortiums will still exclude Premium Size Factor Reductions. T
It's True Up Time Again!
BWC’s True Up window began on July 1, 2023 and will run through August 15, 2023. This is a process required by Ohio BWC at the end of each policy year, where your premiums based on projected payroll for the previous policy year are balanced with premiums based on your actual payroll over the past year. Compliance with both the reporting and payment of any balances affects your company’s eligibility for most savings programs (like Group and Group Retro). If your actual payroll was higher than projected, you’ll be expected to pay that balance to Ohio BWC no later than August 15th. If you are unable to pay the lump sum at that time, please note that any future premium installments will first be applied to your delinquent True Up Balance before being applied to your premium installments. Payment plans for True Up balances are only available through the Ohio Attorney General’s office following an application process. If this year’s True Up caught you by surprise, next year consider running a mock report in May or June to help your company prepare for any balance that may be owed. The payroll classifications and totals reported this summer will be used to determine your 2024 policy year premiums. For the 2023 policy year that just began, BWC will be using payroll projections based on your True Up from July 2022. Adjustments to your estimated payroll can also be made throughout the year by contacting BWC at 1-800-644-6292. Spooner clients are
Choosing the Best Workers' Comp Partner for Your Business
Even though the 2023 BWC policy year just started, we’re already looking ahead to 2024 Group Rating and Group Retro programs. It can be hard to feel like a savvy buyer when it comes to workers’ comp in Ohio, but Spooner would like to share some pointers for how to understand the timeline and choose the best partner. If you’re thinking of changing your partner for Group Rating or Group Retro, be sure not to complete the renewal that your current TPA sends this summer. Most employers don’t realize that cutting a check for a renewal in summer of 2023 will obligate them to their current TPA through June of 2025. Make sure your accounting team is aware of this, too. We’ve seen too many unhappy customers of other TPAs get trapped this way. Are you under the impression that because you’re a member of XYZ Chamber of Commerce, you have to utilize their partner for workers’ comp programs? Not the case. The sponsoring organization frames it that way because there’s money on the table. For example, if you are an XYZ Chamber member (who happens to be partnered with a specific TPA) and you want to leave that TPA, XYZ Chamber makes less money. Naturally, they want you to stay with their TPA and may even advise you can’t get that discount outside of their partnership. This is patently false. Most TPAs have access to all of the same Group Rating and Group Retro programs for all industries, and the sponsoring orga
MCO Open Enrollment is Here!
Many of you know that every two years in May, MCO Open Enrollment occurs. This is the time that Ohio employers can choose the Managed Care Organization (MCO) they’ll work with for the next two years, and beyond. If you’re reading this and Spooner Medical Administrators, Inc. (SMAI) isn’t your MCO, now’s the time to move on possibly the best business decision you’ll make this year. Especially if you work with Spooner Inc. as your TPA, having SMAI as your MCO really opens the lines of communication between both parties. SMAI's team is ready to schedule a call, Zoom, or in-person meeting with you anytime through May 26. Click here to send them a message, or give them a call. Remember, MCO Open Enrollment only comes around every two years and only lasts four weeks. If you’re on the fence, it may be time to take a chance. Switching MCOs costs nothing, but when claims are managed poorly from a medical perspective - you’ll feel the sting down the road in your BWC premiums. Additionally, bi-weekly management calls and customizable reports can help you feel like you’re never out of the loop with what’s happening in your claims. Speaking of staying informed - SMAI's proprietary web-based software allows you create and run customized reports 24/7, report a claim at any hour, search in-network providers, and even create multiple company logins with different restrictions and a
2018 & 2019 Group Retro Update
Many of you may be wondering what the status is of the Group Retro lawsuit that we talked so much about in February. Just over two months have passed – but when it comes to legal matters, it’s not much time at all. To catch you up to speed, a magistrate determined in February that BWC abused their discretion by withholding Retro refunds. BWC had a two-week window following that 2/6/23 decision to file any objections to the decision – which of course, they did. They chose to reiterate several points from their original arguments, and indicated that they did possess the authority to change a portion of the Revised Code without going through the typical rulemaking process. Our lead plaintiff, Kent Elastomer, and their counsel at Roetzel & Andress have already filed a response to those objections. We’re waiting to see if the full court of appeals wishes to hear oral arguments or proceed with the record that has already been established. Unfortunately, there is no timetable on these next steps, but we will keep you updated here on our blog, on our LinkedIn page, and through our client services managers (if you’re a current Spooner client). If you participated in Group Retro during the 2018 or 2019 policy years and would like to be on our roster so we can fight for your refunds when the tie comes, complete this form and one of our team members will be in touch with
Ohio BWC Rates Still Rising for Some Employers in '23
You may remember that we told you earlier in the year that Ohio BWC’s “Base Rate Reduction” didn’t mean lower rates for everyone. Now we have the data on which base rates are going up, and the Ohio workers’ comp policies that increases will be impacted. Manual (NCCI) codes within all industries will see increases, but some more than others. If your business classifies payroll under manual codes for commercial, transportation, construction or agriculture, some of your base rates may increase as much as 20%. These new rates will become effective when the new BWC policy year begins on July 1, 2023. Being enrolled in Group Rating for the 2023 policy year doesn’t “lock in” rates – these will still apply regardless of program enrollment. No one likes surprises when it comes to finance, so we’re here to help determine how much of an increase you can expect. If you complete this form on our website, we’ll calculate your increase for you and we’re happy to discuss additional savings options. If you have any additional questions about these changes, please contact us at
Catastrophic Safety Services
We’ve been collecting testimonials from a few clients lately, and one of them spoke about how our safety team responded to a stressful situation in a way that gave him a lot less to worry about. HR Associates Personnel Service in Piqua, Ohio began working with Spooner as their TPA over ten years ago. Soon after our partnership began, an employee tragically suffered a heart attack while driving a forklift - and right away, Spooner sprang into action. We provided an investigation, followed by a comprehensive study with photos of the worksite. Steve Risner, Vice President of HR Associates, told us that “having piece-of-mind on that day spoke volumes about the integrity of Spooner’s team.” When catastrophic events happen in the workplace, management shifts into high gear to respond. Incidents like amputations, forklift accidents, fatalities, and personal illnesses that manifest at work are examples of catastrophic events that could lead to OSHA and VSSR issues. Spooner’s safety professionals can support your management team in these crisis situations by conducting thorough incident investigations to identify the root cause, and creating plans for preventive actions going forward. Catastrophic events require a swift and proactive response, so we urge you to contact us as soon as these events occur, so we can provide best
The Future of the Voluntary Abandonment Defense Remains Unclear
A recent House Bill made changes to Revised Code (R.C.) 4123.56, which became effective in September 2022. This part of the R.C. clarifies eligibility for Temporary Total Disability (TTD) compensation in workers’ comp claims. It was meant to provide clarity following the decades of case law that had complicated the “voluntary abandonment” defense often used by employers when a claimant takes voluntary action to end their employment. While the statute reads clearly enough, the changes resulted in ambiguity due to lack of detail. Ohio BWC or the Industrial Commission will often issue a clarification following such changes – but that didn’t happen this time. On March 2, 2023, the Tenth District Court of Appeals in Columbus issued a decision in State ex rel. Autozone Stores, Inc. v. Industrial Commission that could have a broad impact for Ohio employers. This was the first time an appellate court weighed in on the application of 4123.56(F) in a TTD claim, and it wasn’t a favorable ruling for businesses. Essentially, the ruling allowed the claimant to continue collecting TTD even though they were able to work with restrictions (for a different employer). The potential impact of this decision could hold employers hostage with no defense in TTD claims, driving up both EMRs and premiums for Ohio businesses. If you’d like to read more about the case surrounding this and its implications, click
2023 Spooner Safety Seminars Announced
*ATTENTION 2022 PY Group and Group Retro Clients* The Spooner Safety Seminars are back on the road! All employers are welcome to attend these informative workplace safety seminars. The training sessions will satisfy BWC’s 2-hour safety training requirement for companies participating in Group Rating or Group Retrospective Rating for the 2022 policy year. Cleveland Area April 18, 2023 from 10 am -12 pm at Holiday Inn, 6001 Rockside Road, Independence, OH 44131 - Click here to register Dayton/Cincinnati Area April 19, 2023 from 10am - 12 pm at Hilton Garden Inn Dayton South-Austin Landing, 12000 Innovation Drive, Miamisburg, OH 45342 - Click here to register Columbus Area April 19, 2023 from 3pm -5 pm at Embassy Suites, 5100 Upper Metro Place, Dublin, OH 43017 - Click here to register Youngstown Area April 20, 2023 from 10 am - 12 pm at A La Cart Catering, 429 Lisbon Street, Canfield, OH 44406 - Click here to register NOTE: Registration Deadline is 4/10/23, 11:59 PM The attendance fee is $35.00/person, billed out after your attendance. Feel free to contact our safety team with any
2023 Q1 Ohio BWC Update
BWC announced in January that they are proposing an 8% rate reduction for private employers in the 2023 policy year (which begins 7/1/23). This isn’t the first time they’ve touted it – and it’s also not the first time people have misunderstood what it actually means. Not all manual classifications (NCCI codes) will receive a decrease. In fact, some may see their base rates rise. The 8% is an average, meaning BWC will collect 8% less premium across the board. The administrative fee baked into employer premiums will be coming down for the 2023 policy year, but don’t get too excited. It’s going from 31.59% to 29.01%. The 2.58% drop won’t make a huge difference for most Ohio employers. For example, a policy with a $75,000 annual premium will only see a savings of $1935 next year based on that change. Make sure you complete the 2-hour safety training required for 2022 PY Group Rating and Group Retro participants by June 30, 2023. We have you covered on this one! Just sign up for one of our Safety Seminars being held throughout Ohio in April. These fill up fast, so don’t wait to register. Registration is open for 2023 Ohio Safety Congress! We’ve missed this event dearly and we’re excited to return. For the uninitiated, this three-day event takes place March 8-10 and is FREE for state-fund employers (those with a BWC policy). Between the education, exhibits, continuing education credits and teambuilding
