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How does a Group Rating Plan work?

A group plan pools, or combines, the individual experience of participants (4 year claims history, average 4 year payroll history, modified and expected losses) for the purpose of calculating a group rate. A group is pooled by their industry group which is identified by the manual in the experience which produces the greatest premium for the employer.

The purpose of the group plan is to reward the participants with a higher credit rating in the group than
“They have an experienced, courteous, and professional staff, and they have helped our company to effectively manage our workers’ compensation claims and control our premium costs.”

–John S. Santisi, President
Phoenix Supermarkets, Inc.
the individual participant can obtain by itself. A small to medium size employer, no matter how good their experience may be, is always limited to the credit they earn by their size. Only the largest employer can obtain the maximum allowable credit rating. A group rating plan increases the potential of receiving a credit rating reserved for the largest employer. The higher the credit, the more your base rate is reduced, thereby generating lower premiums.

Equally important is the fact that a group plan must be correctly formed. In order to form a group that achieves maximum savings, a group rate will be calculated based on the future rate of each participant. BMSO will obtain the payroll and claims information from the Bureau of Workers' Compensation for each employer, project the individual merit rate of the employer and forecast the most beneficial group of employers which will produce the maximum savings.

Requirements to form a Group Plan:

  • Membership in an association (that has been formed for a purpose other than that of obtaining group workers' compensation coverage) which has been in existence for two (2) years.
  • Develop a plan to improve accident avoidance, safety and claims handling.
  • Group similar industry types so that group is substantially homogeneous.
  • Group must consist of at least 100 employers or aggregate workers' compensation premiums of the members are to exceed $150,000.
  • Participants must be current on all payments to the Bureau, a lapsed coverage cannot extend beyond 59 days within the 18-month period prior to the Group filing deadline, and no participant can be in a part-pay plan in the year prior to the commencement of the Group Plan.

Benefits of Group Plan:

  • Participants are protected against the impact of any one claim.
  • Participation is voluntary and is renewed each year. An employer can withdraw from a group plan and return to their individual rate.

Higher Credit Rating. Lower Premiums. Greater Savings.

BMSO develops group rating plans on behalf of the members of The Ohio Chamber Alliance, Inc. and numerous other associations. Discounts may be achieved depending upon the employer’s individual claims history.

Current clients of BMSO need not apply to our groups. Current clients are automatically evaluated and/or re-evaluated each year for participation in one of our groups.

Agenda for Private & Public Employers

  1. July 1 – BMSO and associations begin marketing with mailing of AC-3 forms to current and prospective members for participation in upcoming group rating program (Temporary Authorization to Review Information). (Public employers – January 2)
  2. August 15 - BMSO begins to access information from BWC needed to review employers for group consideration. (Public employers - February 15) BMSO begins evaluation of group.
  3. September 15 - Employers who requested evaluation begin to receive letters from BMSO detailing acceptance and savings.
  4. November 30 – BWC's deadline for filing of all settlement requests by employers.
  5. January 10 - BMSO's cut-off date for receiving new AC-3s for upcoming group rating program. (Public employers - April 1)
  6. January 30 – Employers who requested evaluation begin to receive letters from BMSO detailing rejection and explanation.
  7. February 24 - invitation responses due back to BMSO. (Public employers - June 15)
  8. February 26 - group rating applications are filed. (Public employers - June 20)
  9. February 28 - sponsor wrap-up meetings to be completed. (Public employers - June 30)
  10. July 1 - Savings Begin! (Public employers- January 1)
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