Ohio BWC is switching to prospective billing effective July 1, 2015.
Here are some things to know:
• With the switch to prospective billing, BWC will require payment before it provides coverage.
• BWC will cover the transition cost with a transition credit – no additional cost to employers.
• Prospective billing became effective July 1, 2015, for private employers.
• The switch to the industry standard of prospective billing provides many benefits, including:
o An overall base-rate reduction of 2 percent for private employers;
o Allowing BWC to better forecast the level of premium required to be collected each policy year;
o Opportunities for more flexible payment options (up to 12 monthly installments);
o Better opportunities for BWC to provide quotes online or via the phone;
o Increased ability for BWC to detect employer non-compliance and fraud.
• BWC will provide employers with an invoice for their 12-month premium in June of each year.
• For July 1, 2015, private employers will be given a bi-monthly (six installment) payment schedule, with the option to select a different plan by July 15 (May 15 in subsequent years). If you are a minimum premium payer ($120 plus assessments), you must pay in one installment.
• Employers will have the following options: o Monthly (12 installments); o Bi-monthly (six installments); o Quarterly (four installments); o Bi-annually (two installments); o Annually (one installment).
• Employers may only select their installment options once a year. The option an employer chooses is effective for the entire policy year. • An employer’s coverage will lapse if BWC does not receive timely payment of an installment.
• Employers must reconcile their actual payroll for the prior policy year. BWC is calling this a payroll true-up. This will be due 45 days after the close of the policy year.
o BWC will not lapse employers for not reporting the payroll true-up.
o However, BWC will remove employers from their current rating plan or discount program if it does not receive a payroll true-up by the due date. n To be eligible for the Go-green discount, employers must complete* the payroll true-up online by the due date.
o Any outstanding payroll true-ups will render the employer ineligible for participation in future rating plans or discount programs until the employer submits all outstanding payroll true-ups.
• Employers must submit payroll true-ups online at www.bwc.ohio.gov, by phone at 1-800-644-6292 or in person at a BWC customer service office.
Info from: https://www.bwc.ohio.gov/downloads/blankpdf/ProspectiveOverviewPA.pdf