As a Sedgwick customer, one of the many services that we offer to ensure proper claims management is attendance at workers’ compensation hearings held before the Industrial Commission (IC) of Ohio.  A claim makes its way before the IC when a decision is issued by the Bureau of Workers’ Compensation (BWC) and a party to the claim files an appeal or objection to that decision.   IC hearings can address a wide variety of issues including initial claim allowance, additional conditions, payment of compensation and permanent total disability, just to name a few.

In July of 2023 the IC officially adopted and implemented a “virtual hearing” option.  This change provided the flexibility to either attend the IC hearing in person at one of the 12 Industrial Commission offices throughout the state, or virtually via WebEx.   The virtual option is a positive addition and allows all parties to participate fully in the hearing process without having to take significant time away from their daily responsibilities.   

Our Hearing Reps currently utilize a combination of in-person hearing attendance as well as virtual attendance to cover your hearings.    We have carefully monitored the hearing outcomes since the virtual option was introduced and I am pleased to share that our hearing outcomes continue to trend upward and that in person vs. virtual is not impacting our results.  We continue to monitor our team’s efforts for virtual hearing attendance and are confident that your position at hearing is being positively managed with the inclusion of virtual attendance.

Should you have any questions or concerns related to how your IC hearing issues are handled, or if you feel in person attendance is necessary, please contact your client services representative or your assigned claims examiner and they will make sure we are aware of that service requirement.

Sedgwick appreciates the opportunity to be part of your program’s claims management initiatives.

Professional Employer Organizations (PEOs) enter employee leasing arrangements with companies, and essentially absorb the human capital into the PEO’s corporate structure.  The PEO then leases the employees back to the client company while providing administrative tasks associated with Human Resources.  Additionally, the client company can take advantage of discounts typically afforded to larger organizations.

Often employers make the decision to partner with a PEO due to difficulties in one or two areas where the PEO can be effective, however they can potentially relinquish control over other areas that are not in need of a co-employer relationship, resulting in them paying for services they may not need. 

When reviewing PEOs, employers should be aware of potential impacts on their workers’ compensation program. 

• A PEO may not understand Ohio’s unique monopolistic workers’ compensation system and how to keep clients compliant.
• If the PEO has workers’ compensation issues, it may result in increased rates to their clients with little warning,
• If an individual client’s experience negatively impacts the larger pool of employers, a PEO may carve an individual client’s workers’ compensation experience out of their main pool. This can be done while maintaining the PEO relationship and it could leave the employer paying much higher individual rates.  When this occurs, the employer continues to pay the fees associated with being part of the PEO but does not receive the financial benefits of the pooled group. 
• When a company leaves a PEO, they often pursue a Bureau of Workers Compensation (BWC) program, like group rating or group retrospective rating. Third Party Administrators are generally very hesitant to invite prior PEO clients to a rating program, as it is often difficult to decipher the claim loss history for the individual employer.  An invitation to a rating program could be delayed up to 5 years while the claim loss history for the individual employer is being rebuilt.  During the waiting period, the employer that left the PEO would pay full, undiscounted premiums to the BWC.
• If the PEO is self-insured (SI), the BWC requires the SI PEO to provide specific data to BWC when a PEO relationship is severed. If the SI PEO does not provide the specific data to the BWC, BWC will give the policy leaving the PEO a 2.00 Experience Modifier, essentially doubling the standard premium rate. 

The decision to partner with a PEO should not be made without understanding the pros and cons of the relationship.  If you have questions on how this decision could impact your workers’ compensation expense, please reach out to your Sedgwick account representative.

The Ohio Bureau of Workers' Compensation (BWC) offers employers many different rating, bonus and rebate programs to encourage cost control, return-to-work, efficiency and safety.

Private Employers

Public Employers

*Any active policy that chooses to pay all of their installment payments in a single payment by January 3, 2024 will receive a 2% Early Payment Discount.  (This discount cannot reduce premiums below the $120 annual minimum.)  When the payment is received, BWC will remove all remaining installment billings for the year and the 2% discount will be refunded to the employer.  The 2% discount will not be adjusted during the true-up process at the end of the rating year.

The Bureau of Workers’ Compensation (BWC) Board of Directors has approved the following rates for public employer taxing districts.  The rates reflect a 1% decrease of overall premium for the 1/1/2024 to 12/31/2024 payroll year.

*Rates are based per $100 of payroll and do not include the additional 22.86% administrative fee.

If you have any questions regarding your rates, please contact your Sedgwick Rate Analyst at 800.825.6755.