400 Niles-Cortland Rd. SE Suite A, Warren OH. 44484 | Phone (330) 856-6270 / Fax (330) 856-6675
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CLAIMS PROCEDURES - RATE EVALUATIONS

Workers’ compensation experience

  • Lost time – more than seven days lost; average cost $40,5000
  • Frequency – number of claims in experience
  • Severity – amount of medical/indemnity and days lost per claim
  • Base-rated employers – expected loss rate of less than $8,000
  • Experience-rated employers– premium varies with frequency and severity

How are rates calculated?

  • EM = experience modifier
  • Base rating = 1.0
  • Experience rating:
    > Credit rated – less than or equal to .99 (saving money)
    > Penalty rated – greater than or equal to 1.1 (wasting money)

Group Rating

Combining similar employers and experiences equals greater discounts and savings.

Saving money

$55,523 Initial annual premium, EM = 1.10 (penalty rated)

EM = .95 (now credit rated)

“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.
$48,100
  Annual premium the next year
$7,423
  Net savings in second year
  Group savings (93 percent)
$3710
  Premium paid at group EM
$51,813
  Group Savings

Base-rated employer in group

$7,588 Initial annual premium, EM = 1.00 (base rated)

$501
  Premium at group EM (93 percent)
$7,087
  Net potential group savings

Drug-Free Workplace Program (DFWP)

  • More than 25 employees
  • Up-front discounts
    • Level 1 = 10-percent savings
    • Level 2 = 15-percent savings
    • Level 3 = 20-percent savings

Drug-Free EZ

  • 25 or fewer employees
  • Up-front discounts
    • Level 1 = 10-percent savings
    • Level 2 = 15-percent savings
    • Level 3 = 20-percent savings
    • 20 percent also possible by meeting claims goals

DFWP and Drug-Free EZ advantages

  • Joining equals a 10-percent minimum premium reduction
  • Grant money available
  • Safer work environment/fewer injuries

Saving with DFWP

Annual premium before discount
$100,000
DFWP savings (Level 1 = 10 percent)
$10,000
Final Premium
$90,000
Net Savings
$10,000

Safety GRANT$

  • 4-to-1 matching ratio
  • $40,000 from BWC for safety

DFWP Grant

  • 2-to-1 matching ratio
  • $10,000 average grant for training

Transitional Work GRANT$

  • Safe and early return to work
  • Lowers frequency and severity costs
  • Savings continue annually
  • $1,000 to $5,600 grants available

Saving with transitional work

 
No transitional work
With transitional work
Medical
$6,000
$6,000
Compensation
$4,800
$1,200
Reserve
$24,000
$6,000
Total Value
$34,800
$13,200
Savings =$21,600

Keys to financial management

  • Keep EM less than 1.0
  • Achieve and maintain group rating
  • Join BWC’s premium-savings programs
  • Allow BMSO to assist in managing your claims
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