PROGRAMS - GROUP RATING
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:
Benefits of Group Plan:
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