NOACC NEWS
Workers Compensation in the News
In light of recent headlines around workers' compensation issues, Benefits 1 Group is sending this Update for Ohio employers. News developments have centered primarily on coming changes to the current group rating system as a result of a recent court ruling in Cuyahoga County. Recent headlines have also focused on potentially inappropriate links between the Cuyahoga County Auditor and another workers' comp. service provider. Here is key information for you to consider in these developments.
What Does the Cuyahoga County Court Ruling Mean to Your Business?
On November 18, 2008, the Cuyahoga County Court of Common Pleas granted a request by plaintiffs to prohibit the Ohio Bureau of Workers' Compensation (BWC) from continuing the group rating program as it currently is structured with the next rating year beginning July 1, 2009. (This decision will have no impact on what public and private employers will pay on their December 2008 premium bill.)
A key issue revolves around whether rates should be calculated from a claims analysis that is prospective (looking forward) or retrospective (looking back). In his ruling, Judge Richard McMonagle agreed that Ohio state law requires the rating plan be retrospective. He ordered the Bureau to change the system and set rates for non-group members in an equitable manner by July.
BWC officials responed that the bureau had already been working on longer-term plans for reform and agreed to move to a new risk-rating system that will take into account the number and frequency of workplace accidents, in contrast to the current system where only the dollar value of claims is considered.
Along with the BWC agreement to a review of its system, reaction to the judge's ruling has set in motion a number of events including a bill before the Ohio House of Representatives to remove the "retrospective" language from the law. Letter writing campaigns to legislators are also underway. The structure, rates, deductibles and safety programs involved in workers' comp. are all under review as private and public entities explore new approaches to these issues.
When changes to the BWC rating system are finally determined, we will share this information. Until then, be aware that change is likely to be announced in 2009.
Integrity: The Benefits 1 Group Promise At this time, we would like to reiterate the Benefit 1 Group Promise: Service, Solutions, Integrity and Expertise. This promise has always been at the center of our work for the clients we serve. In light of investigations of others in our industry, we felt it was important to restate our commitment in writing to you.
Benefits 1 Group, as the preferred provider for 125 NOACC chambers of commerce across Ohio, has promised to keep you up to date and will keep in touch as major developments continue.
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