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PROGRAMS - PREMIUM DISCOUNT PROGRAM PLUS

Employers will receive premium discounts of up to 10 percent for each of the first two years of participation and up to 5 percent for the third and fourth year upon meeting program requirements and implementing BWC’s 10-Step Business Plan. However, the premium discount cannot take the premium below .15 experience modification.

An employer who enrolls in PDP Plus will work with a BWC employer service specialist to develop a plan of action. An employer will need to implement a safety program that meets the needs of the business and learn how to control future workers’ compensation costs by using risk-management techniques.

Benefits of PDP Plus Participation

• The potential for approximately 30-percent savings
• Reduced workers’ compensation costs
• Increased safety awareness
• Lasting, positive changes that should help the organization work more efficiently and effectively

PDP Plus Enhancements

• Establishes a benchmark of claims severity and claims frequency for each participating employer, whereby after one year, the employer must show a 15-percent improvement for either benchmark to receive a refund check;
• Provides participants with claims frequency and claims severity base-line data within 45 days of starting the program.
• Approximately one year later, BWC will provide participants with updated figures to determine if an employer has earned the refund;
• Is available to participants having an experience modification factor of .15 or greater and who successfully implement their plan of action;
• Is effective July 31, 2001

The PDP Plus refund amount will be based on the following percentages of premium paid:

• For a 15-percent or greater claims severity reduction – a 10-precent refund;
• For a 15-percent or greater claims frequency reduction – a 10-percent refund;
• For obtaining a 15-percent or greater claims severity reduction and a 15-percent or greater claims frequency reduction – a 5-percent bonus refund. A 20-percent refund if both benchmarks are accomplished.

Also, if after two years, there has been no discernible improvement, BWC may remove PDP Plus participants from the program at the discretion of BWC’s risk technical services department.

• When filing the Application for the Premium Discount Program Plus (UA-5), BWC will determine eligibility based upon current account information and advise you of the status via mail.

To qualify, the following criteria must be met:

• Private employers must have an experience modification factor of .15 or greater for the policy year in which the discount is given;
• Public employer taxing districts must have an experience modification factor of .15 or greater, effective Jan. 1 of the policy year in which the discount is given;
• The employer must be current on all premium payments as of the beginning of the policy year or anniversary date of participation;
• The employer must have active coverage the first day of the policy year or anniversary date of participation;
  The employer must not have cumulative lapses in workers’ compensation coverage of more than 59 days within the 18 months preceding the beginning of the policy year or anniversary date.

In addition:

• Self-insuring employers and state agencies are not eligible to participate;
• An employer cannot participate in retrospective rating or group rating plans within the same policy year of PDP Plus participation;
• Employers also participating in the BWC Drug-Free Workplace Program (DFWP) will receive the larger of the two discounts, but not both. However, they are eligible to receive the claims severity/frequency refund with the DFWP discount.

Program requirements

• Employers will implement BWC’s 10-Step Business Plan with the assistance of an assigned BWC employer services specialist.
• Employers will submit a plan of action to BWC outlining their plan for implementing BWC’s 10-Step Business Plan.
• Employers must allow BWC access to their job sites to review the business and assist them in implementation of the program.
• Employers who pay to use the services of a certified business or trade association sponsor will submit their plan of action to their sponsors instead of BWC.
• Failure to submit a plan of action or denying access to the employer’s work site will result in the loss of the discount, retroactive to the beginning of the policy year.

Ohio Bureau of Workers' Compensation Literature and Forms
(requires Adobe Acrobat Reader)

Premium Discount Program Plus Fact Sheet
UA-5 Form

PDP + and DFWP Stacking

The current stacking rule allows employers to stack the discounts for PDP+ and DFWP/DF-EZ in program years beginning 1/1/02, 7/1/02 or 1/1/03. If the premium discounts are stacked in any of these three periods, the stacked discounts will continue to be applied if employers participating in both programs are successfully meeting the requirements.

Due to the fact that the PDP+ maximum duration is three years and the DFWP/DF-EZ maximum duration is five years, the longest an employer can participate in both programs simultaneously is three years. Therefore, an employer enrolled in both programs at the same time can only receive the stacked discounts for a maximum of three years.

The PDP+ discount will be applied first since the applicable rule does not allow the discount to reduce the EM below .15. After the PDP+ discount is applied, the DFWP/DF-EZ discount will then be calculated.