Every employer has an opportunity to save on premium.
The Ohio Bureau of Workers Compensation group retrospective rating program is a performance-based incentive program designed to return a portion of premium to employers who demonstrate their ability to reduce employee injury rates and lower associated claims costs.
Group Retrospective Rating is a voluntary performance-based incentive program designed to reward participants that are able to keep their claim costs below a pre-set amount. Group members continue to pay their individual premium; however, they have the opportunity to receive retrospective premium adjustments (refunds or assessments) at the end of each of the three evaluation periods. Employers may be billed for additional premium if the group performs poorly. If claims are reduced through the implementation of safety protocols by the group at large, the group is deemed successful and will be awarded the retrospective payment.
Premium with Potential Refund or Assessments
A group’s retrospective premium will be recalculated 12, 24, and 36 months after the end of the policy year. At the end of each period, the BWC will take a snap-shot of the incurred claims losses (indemnity, medical and reserves) for the entire group and calculate the group’s retrospective premium (minimum premium plus incurred losses multiplied by BWC development factor, i.e. developed claims losses).
If the retrospective premium that is calculated is less than the group’s total standard premium, the participants will receive a refund. However, if the retrospective premium is greater than the group’s total standard premium, an assessment will be charged by the BWC. Each group limits the maximum assessment by selecting a premium cap between 5% – 100% of merit-rated premium.
Note: Incurred losses used in the retrospective premium calculation will be limited to $500,000 per claim and do not include surplus expenses or Violation of Specific Safety Regulation costs. Salary continuation payments will also not be included, but the associated reserve will be included in the calculation.
While participating in the Group Retrospective Rating Plan, employers can only participate in the programs listed below:
- Early Payment Discount*
- Go Green Discount*
- Safety Council (participation rebate only)
- Salary Continuation
- Transitional Work Program Grant
- Vocational Rehabilitation
Note: Early Payment Discount Program cannot be combined with the Go Green Discount.