Buckeye Farm News
The notice comes as the Ohio Bureau of Workers’ Compensation (BWC) switches to a prospective billing process, which will require employers to provide payment before they receive coverage rather than after.
Prospective billing starts in July, and private employers will receive their first invoice in August. According to the BWC, a transition credit will be used to make the June invoice payment on employers’ behalf.
The agency says employers will need to report payroll for the January to June 2015 period, but BWC will pay that premium with the transition credit as well. Transition credits will not be granted to employers with lapsed coverage or employers who have not reported their January to June 2015 payroll.
In February, BWC announced a 10.8 percent rate reduction, which it attributed to several factors, including lower-than-expected claim frequency and adoption of the prospective billing system.
Prospective billing is the industry standard practice and enables BWC to lower rates in reflection of increased investment income, the agency said.
BWC is offering free seminars around Ohio to answer questions and provide details about prospective billing.