C O M P N O T E S
Workers' compensation

Private employer True-Up due August 15th

With prospective billing the Bureau of Workers’ Compensation (BWC) requires that all employers true-up their payroll annually.  To true-up, private employers are required to report their actual payroll for the July 1, 2022 through June 30, 2023 policy year and reconcile any differences in premium by August 15, 2023. 

If you have not yet completed your true-up, please do so immediately.  You can report and pay any additional premium due by clicking here or by calling BWC at 800.644.6292.

Failure to report and pay timely can result in severe penalties.  Employers that fail to complete the true-up process will:

1. Lose any rebates due from 2022 program participation.
2. Be removed from all 2023 discount and rebate programs. The employer will be removed from the program for the entire year, be re-rated removing the discount, and the remainder of the 2023 installments will be adjusted to account for the rate increase.
3. May become ineligible to participate in any 2024 discount and rebate programs if the true-up process is not completed by the program filing deadline.

If you have any questions regarding reporting payroll or the true-up process, please contact your Sedgwick rate analyst at 800.825.6755.

Upcoming BWC program and safety training deadlines

Group retrospective rating program update

As communicated this time last year, there have been several changes to the elements that are used in calculating the performance of the Group Retro Programs and there are more to come.  Group Retro performance takes years to mature therefore Sedgwick is continuing to closely monitor the impact, including implementing changes to our internal processes.

The Bureau of Workers’ Compensation (BWC) has significantly lowered premium rates 12 of the last 13 years for nearly all industries, which is welcomed news for Ohio employers.  With lower rates and lower premiums for the same coverage, Group Retro Programs across Ohio, among all industries, have been generating lower refunds when compared to historical results.  Collectively, changes to rating tables, the BWC's reserving system, and the beneficial lower rates (lower premiums) are all influencing the total refunds of this group program. 

With challenges come opportunities, especially if implementing cost containment strategies that will improve the performance of all Group Retrospective Rating Programs.  Salary Continuation, Lump Sum Settlements, and Handicap Reimbursements are more important than ever to minimize claim costs and maximize program performance.

Handicap Reimbursement, one of the strategies, is a program that encourages employers to hire and retain workers with pre-existing medical conditions.  Under the program, an employer or employer’s Third-Party Administrator (TPA) may file for reimbursement of claim costs on  those workers’ compensation claims where it is proven that an existing condition led to the injury or delayed the healing process.  During the first half of 2023, Sedgwick filed over 900 Handicap Reimbursement applications on claims that are impacting the Group Retro Program.  These applications have already led to nearly 600 awards, reducing the cost of the claim, and improving program performance.  Sedgwick Group Retro clients are forecasted to realize over $5,000,000 in additional refunds due solely to these awards, and BWC is still processing our applications.

Since the inception of Group Retro Rating in 2009, Sedgwick administered programs have outperformed the competition in both average refunds and overall refunds, with over $1 billion in refunds.  We remain diligent in the selection criteria used in our underwriting of the Group Retro Programs that we are entrusted to administer. Our goal is to maximize performance by selecting employers that are committed to employee safety, cost containment and salary continuation while participating in the Program.   When a Group Retro participant does have a claim, Sedgwick partners with the employer to manage the claim to limit costs and minimize the impact of the claim on the Group Retro Program’s performance.  We also have well experienced safety professionals on staff to work with customers to help reduce workplace injuries to ensure consistent results. 

As the industry leader, we are positioned to work with BWC to identify opportunities where the Group Retro Program benefits can always be commensurate with the performance of the Group and provide confidence that the program is strong.

If you are considering joining a Group Retro Program for the upcoming rating year and have questions, please contact your Sedgwick Account Representative.

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