Beginning July 1, 2015, the BWC has made the switch to the industry standard of prospective billing for employer premiums. This means that employers will be required to pay their Workers’ Compensation premiums in advance of receiving coverage. The switch to prospective billing will bring Ohio in line with the industry standard used by most insurance providers. To help ease the transition, the BWC has paid the premium for the first six months of 2015 and offered a transition credit for the month of August. You should have already seen this reflected as your first premium payments were due August 31, 2015.
The benefits of prospective billing include an overall base-rate reduction of approximately 2 percent for private employers, opportunities for more flexible payment options ranging from once a year to monthly and increased ability for the BWC to detect non-compliance and fraud, which can provide long-term savings.
If you have any questions about the transition to prospective billing for employer premiums, please contact Matt Erkkinen at email@example.com or 937.226.5613.