The Ohio Bureau of Workers’ Compensation (BWC) is considering changes to the private employer Group Retrospective Rating Program, according to the Ohio Manufacturer’s Association, an organization that promotes the interests of manufacturers and how they are affected by work accident law in Cincinnati.
“Investigations into the basic premium factors and loss development factors for the Group Retrospective Rating Program have revealed that it is necessary to add a provision for Managed Care Organization (MCO) expenses within the calculated premiums,” the BWC stated. “We propose to adjust the Loss Development Factors in the Group Retrospective Rating Program for Private Employers beginning July 1st, 2016 by 12.4%. This increase represents the provision for the MCO costs on the developed losses.
“The impact of this change is estimated to increase the final overall premium income from the Private Employer Group Retrospective Rating Program by 6.3% annually, or approximately $15.4 million annually.”
Changes Would Result in 5 Percent Reduction in Refunds
The change is expected to make between a 4 to 5 percent reduction in premium refunds as required under workers’ comp law.
“Group 2016-1 is expected to have a small reduction in its projected premium refund, from 59.4% to 56.9%,” OMA’s Brian Jackson writes in the report on the changes. “The projected refund for OMA’s Group 2016-2 is 22.1%, down from 27.5%.”
Call the Cincinnati Work Accident legal specialists at 513.721.6500.