Search this Site

Search Term Submit Search

Browse Topics

• COSE Education Programs
  • Member Education Series
  • SBC 2008
  • SBC 2009
  • SBC 2010
• COSE Business Networks
  • COSE Arts Network
  • COSE Home Business Network
  • NEOSA- The COSE Technology Network
• Finance
  • Access to Capital
  • Business Financial Planning
  • Financing Solutions
  • Investment Management
  • Receivables Management
  • Tracking Business Finances
  • Wealth Planning
• Human Resources
  • Conflict Resolution
  • Creating a Positive Culture
  • Diversity Awareness and Education
  • Employee Development
  • Leadership Skills in Employees
  • Recruitment and Safe Hiring Practices
  • Termination of Employees
  • Workers' Compensation
• Legal
  • Bankruptcy and Creditor's Rights
  • Building and Maintaining Your Legal Infrastructure
  • Intellectual Property
  • Liabilities Within the WorkForce
• Marketing
  • Branding
  • Customer Retention
  • E-Marketing Tips and Trends
  • Lead Generation
  • Marketing 101
  • Marketing Plans
  • Public Relations
  • Search Engine Marketing
  • Social Media
• Personal and Professional Development
  • Goals: Setting and Achievement
  • Personal Evolution
  • Professional Advancement
• Sales & Networking
  • Customer Service
  • Networking Strategies
  • Prospecting
  • Relationship Selling Strategies
  • SME Cleveland
• Small Business Advocacy
  • COSE Advocacy Information
  • Health Care Reform
• Small Business Tools
  • A Checklist of Tools for Business
  • Business Insurance
  • Buying and Selling a Business
  • Crisis Communications
  • Growth Strategies
  • Investing in a Franchise
  • Owning a Franchise
  • Peer Advisory Groups
  • Strategic Planning and Execution
  • Succession Planning
• Sustainability
  • Energy
  • Greening Your Business
  • Waste Reduction, Recycling and Composting
• Technology
  • Business Software and Applications
  • Business Technology
  • Developing and Implementing a Website
  • Disasters: Prepare & Recover
  • Document Management Software
  • Innovation in Technology
  • SEO
  • Telecommunications
• Wellness in the Workplace
  • Healthy Lifestyles

• Mindspring
• Topics
• Human Resources
• Workers Compensation
• The New BWC Deductible Program

The New BWC Deductible Program

written on April 08, 2009 by COSEWorkersCompensation contributor

BWC's Deductible Program

Program overview

The BWC Deductible Program helps employers lower their premiums by offering an upfront premium discount in the form of a per-claim deductible. It also encourages employers to focus on workplace health and safety to reduce injuries and illness.  Employers who effectively manage their workers' compensation claims and related costs will see a financial benefit. However, if an employer does not manage claim costs, the deductible can exceed premium savings.

Eligibility requirements

We review all applications to determine eligibility.  We will accept only qualified employers into the program.  To participate, your organization must:

1) Be a private, state-funded employer or a public employer taxing district.  Selfinsuring employers and state agency public employers are not eligible to participate.

2) Be current on all premium payments and deductible billings at the time of enrollment.

3) Have active coverage by the application deadline.

4) Be in good standing at the time of enrollment.

5) Not have cumulative lapses in coverage in excess of 40 days within the 12 months preceding the application deadline.

6) Meet a required credit score.

Deductible level

When applying, you may choose a deductible level appropriate for your business.  However, your deductible level can not exceed 25 percent of your premium in a policy year.  You will be responsible for claim costs up to the deductible level for any claim that occurs in the policy year of enrollment.  We offer deductible levels of:

• $500 per claim;
• $1,000 per claim;
• $2,500 per claim;
• $5,000 per claim;
• $10,000 per claim.

Deductible billing structure

We will pay claims costs in full.  You will then reimburse us for any claim costs up to the deductible level chosen.  You will receive monthly billings for the claim costs for all claims that occur during the policy year of participation.  We will bill you until you have reached your selected deductible level.  You must pay all deductible billings within 28 days of the invoice date.  Those who do not make timely payments are subject to BWC collection efforts. You may make payments online or via U.S. mail.

Discount calculation

Your level of discount will be determined by your:

• Chosen deductible level, and
• National Council on Compensation Insurance (NCCI) hazard group.

We determine the NCCI hazard group using your primary manual classification.  For base-rated employers, we will apply the discount for participation directly to the base rate established for the policy year.  We will calculate experience-rated employers' discounts after establishing the modified premium rate.  This will occur, prior to any other premium discounts.  We will not include administrative costs and Disabled Workers' Relief Fund assessments in the discount.  We will include all claim costs in your experience-rate calculation.

Application and enrollment

You must submit an Application for Deductible Program (U-148) to enroll in the program.  You may submit applications online, by fax or by mail.  The application form includes the fax number and BWC mailing address.  Enrollment and coverage periods are below.

Program enrollment period

o Private employers April 1 through May 31

o Public employer taxing districts Oct. 1 through Nov. 30

Program coverage period

o Private employers July 1 through June 30

o Public employer taxing districts Jan.1 through Dec. 31

Renewals

We will automatically renew eligible employers at their current deductible level.  Employers may change their deductible level.  To make a change, simply re-submit the U-148 form during the application enrollment period.  We will conduct mid-term reviews to determine continued eligibility.  If an employer fails to meet program requirements, we can revoke eligibility for the second half of the policy year.  If this happens, BWC will send a 30-day notice to the employer.

Cancellation of participation

Once approved for program participation and the policy year commences, you may not withdraw or make changes to your deductible level.  You must wait until the next policy year to withdraw or change deductible levels.  To leave the program in the upcoming policy year, you must notify us by completing a Deductible Program Withdrawal Form (U-152).  After receiving this form, we will remove you from the program for the next policy year.

Compatibility with other BWC programs

While participating in the Deductible Program, employers cannot participate in the programs listed below for injuries that occur during that policy year.

• Group retrospective rating plan
• Individual retrospective rating plan
• Salary continuation
• $15,000 Medical-Only Program.

However, employers can participate in all of our other programs.  Discounts for employers participating in the Deductible Program and a group rating plan together can't exceed the maximum credit allowable to group during that rating year.

Questions or feedback

If you have questions about the program, please call our BWC employer programs unit at 614-466-6773, or send an e-mail to deductibleprogram@bwc.state.us.

 You may also contact your COSE Workers' Comp Account Manager for assistance with this program and a copy of the application.  COSE Compensation Services can be reached at 216-592-2270.