Why is it Important to Understand Group Retro Ratings?
Group retro is a relatively new incentive program designed to help Ohio employers keep their workplace safe. In 2009, the Ohio BWC created group retro, and since then it has worked exceptionally well for employers who either do not have a group rating option or that have the opportunity to get more premium back from this program. However, there have been some changes made to the rules and regulations that structure the group retro rating that can affect Ohio employers.
Understanding Group Retro
The first this that you, as an Ohio employer, need to understand is what the percentages of refunds are in the group retro program. In the graph, you can see the blue columns represent the standard refund. The standard refund is based on your premium minus the BWC admin fee.
If your company pays $100,000 in premium, the BWC admin fee is roughly $15,000, so that is an $85,000 refund.
The yellow columns represent the premium that is actually paid. This is a more accurate representation of the refund you will receive from the group retro program.
This is why it is important to know if any projection is a standard or gross refund. Otherwise, you may be left thinking you would get a larger refund than you actually will.
How has Group Retro Changed in 2019?
When it comes to the 2019 policy year, the BWC has been giving some upfront discounts for premiums, which is a good thing for some. However, this will also affect group retro employers because the amount of premium in the pool will lower. Most group retro pools have a standard loss run, or they are going to assume losses. This ultimately leads to you not getting the same percentage as before.
It's very important to make sure when you're evaluating group retro, that you understand these changes and how they will affect you. You need to understand where the percentages are projected to be and what they will actually be.
There is a lot to keep up with as the rules and regulations are always changing. That is why Spooner is here to help Ohio employers stay on track and know exactly what they are doing with their group retro refunds. If you have any questions, contact us at Spooner Inc. today or visit our site for more details.
