What You Need to Know: BWC Prospective Billing and Group Enrollment Changes

October 21, 20142:00 p.m. - 2:30 p.m.

Heartland Payment Systems is the Lead Sponsor of all RES events.

The ORA Restaurant Education Series (RES) provides members free access to educational events that help them sustain and grow their businesses and are developed based on member feedback. RES events support a key ORA initiative: the education of our members.

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New BWC billing system structure

NEW group enrollment time frame and dates

About the BWCs transition to a NEW system: Why the Change?

What You’ll Learn Today

Todd Spence Ohio BWC, Business Consultant

Theresa Passwater CareWorks Consultants Inc., Program

Manager

Your Speakers

Overview of Prospective Billing

Todd Spence, MBA, ARMBWC Business Consultant

614-644-1196todd.s.1@bwc.state.oh.us

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Why the Transition to Prospective Billing?

Industry standard More flexible payment options Decrease in base rates by 2% for private

employers and 4% for public employers Increased ability for BWC to detect non-

compliance and fraud

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WHY DOES

THIS MATTER

TO ME?

Three Key Areas of Change

1. BWC Program Enrollment Date Changes

2. Premium Calculation and Payment Changes

3. New Process Added: Annual True-Up

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Program Enrollment Changes Effective for 7/1/2015 Policy Year!

Group rating program – Monday prior to Thanksgiving (November 24, 2014)

Group Retro, One Claim Program, Deductible, Individual Retro – Last business day of January (January 30, 2015)

Destination: Excellence programs – Last business day of May (May 29, 2015)

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Implementing Prospective Payment

Prospective billing effective July 1, 2015.

Moving from reporting and paying premium six months in arrears to BWC estimating premium and employer paying annual premium in advance.

Employers will pay premium in February 2015 (for 7/1/2014 - 12/31/2014) as normal.

In August 2015, employers will have premium due for 1/1/2015 - 6/30/2015 and estimated premium due for 7/1/2015 - 6/30/2016.

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Implementing Prospective Payment

NO DOUBLE BILLING! BWC will apply a transition credit to cover the

January 1, 2015 – June 30, 2015 premium ($0 Due).

Employers will receive: Final Payroll Report for 1/1/2015 - 6/30/2015 ($0 due) An invoice for the 2015 policy year estimated premium

in June 2015.

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Installment Plan Options

In the first year, every employer will be on a bi-monthly plan, with the option of selecting a different installment plan prior to their first premium payment (paid by August 31, 2015). The first installment (covering July and August 2015)

will be paid with transition credit ($0 Due).

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Installment Plan Options

Employers will receive an invoice for the second installment in late July or early August.

This invoice will be due by August 31, 2015. Depending on the selected installment plan,

BWC will mail invoices 30 days prior to the due date.

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Installment Plan Options

Under prospective billing, employers can choose from the following equal payment installment options: Annual (1 payment) Semi-annual (2 payments) Quarterly (4 payments) Bi-monthly (6 payments) Monthly (12 payments)

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True-up Payroll Reporting

Prospective billing requires annual true-ups. BWC will send the True-Up notice in July of each

year. The employer must report actual payroll for the

previous policy year. Online or over the phone only First True-Up due August 15, 2016 (for 7/1/15 - 6/30/16) Result could be credit or debit

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True-Up Payroll Reporting

This information is critical for rate setting. For that reason, any outstanding true-ups will result in

immediate disqualification from rating plans and programs for that current policy year.

Employers must complete all true-ups to be eligible for programs going forward.

Lapsing Coverage

BWC will lapse any employer who does not pay their installment on time.

BWC will not lapse an employer who does not true-up. BWC will estimate the true-up by adding an additional

10% to the premium due and bill the employer. If the employer still does not report their true-up, then

BWC will certify it to the Ohio Attorney General’s office for collections.

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SummaryFirst Changed Program Application Date is November 24, 2014 (2015 Group Rating)First Prospective Premium Payment is due August 31, 2015First Annual True-Up is due August 15, 2016As a result of Prospective Transition Credits, NO premium will be charged for 1/1/2015 - 6/30/2015 and 7/1/2015 - 8/31/2015

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Questions?

Todd Spence, MBA, ARMBWC Business Consultant

614-644-1196todd.s.1@bwc.state.oh.us

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Theresa PasswaterManager of Program Sales1-800-837-3200, ext. 7248

(614) 526-7248Fax (614) 210-5841

theresa.passwater@ccitpa.com

Questions on Your Group Rating Status?

Check out the ORA website, Workers’ Compensation section for information on options

www.ohiorestaurant.org/grouprating

Included on the site is a “Calendar of Events” to help you navigate through all the dates

So, What Now?

When a 1,000 things pile up, it’s easy to overlook the importance of health & safety issues - that’s dangerous!

The Health & Safety section of the ORA’s website helps you stay on top of concerns, offering solutions to today’s restaurant, food, and

alcohol safety issues.

www.ohiorestaurant.org/healthandsafety

Health and Safety

November 18 @ 2:00 p.m. - Serving Alcohol Safely February 15 & 16 - Educational sessions at North America Pizza & Ice Cream Show (NAPICS); Columbus Convention Center

Go to www.ohiorestaurant.org/res to register or to check out past RES events!

Thank you!