November 11, 2009

Decrease Group Savings and Impact Small Employers

On Friday, Oct. 30, 2009, the Bureau of Workers' Compensation (BWC) Board of Directors voted to reduce the maximum discount for group-rated employers to 51 percent. The board decreased the maximum discount by reducing the maximum credibility and applying a break-even factor. The new rates will be effective July 1, 2010. Employers will see the new rates when they pay their premium for the July 1, 2010, to Dec. 31, 2010 pay period, which is due by the end of February 2011.

The BWC has also lowered the minimum requirements for experience rating starting July 1, 2010. This may mean smaller employers who were kept at base rates due to size, but have some claim activity over the past 5 years, could become experience rated with an increase in premiums. Smaller employers with little to no claim activity could also see a credit on their premium.

For a projection on how this change may impact you, consider filling out an AC-3 with Benefits 1 Group. We will do a claims and rate analysis of your policy free of charge. Visit our website at www.benefits1group.com/grouprating or call us at 877-765-4200 ext. 232.

For more information on the BWC's decision, their press release is at the following web link:
http://www.ohiobwc.com/home/current/releases/2009/103009.asp

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