Ohio employers get workers comp premium payment optionsReprints
The Ohio Bureau of Workers’ Compensation Board of Directors has approved a plan that will give employers greater choice in how they pay their annual workers compensation premiums under the state’s revamped billing system.
Effective July 1, the state will transition to a prospective billing system, which requires employers to pay their workers comp premiums upfront, rather than after they have received comp coverage.
When the bill containing the switch to prospective billing was signed into law last year, it required employers to make payments every other month in the first prospective policy year and 12 monthly payments in subsequent years. Under the plan approved on Friday, Ohio employers now can pay their annual premiums in two, four, six or 12 installments.
Ohio bureau Administrator and CEO Steve Buehrer said the switch to prospective billing is expected to provide a number of benefits to Ohio employers, including an overall reduction in rates due to an increased ability for the Ohio bureau to detect noncompliance and fraud.
“Prospective billing is not only the standard across the insurance industry, it will bring a number of benefits to Ohio employers, including the $1.2 billion in premiums BWC will pay on their behalf as we make the transition,” Mr. Buehrer said in a statement. “We’re pleased to offer more flexibility as part of our ongoing efforts to modernize our operations and provide the quality service that Ohio employers expect.”