Richland County Safety Council

1. Richland County Safety Council June 16, 2016 BWC Update Presented By: Troy Boughan BWC Business Consultant 419-227-4763 troy.boughan@bwc.state.oh.us

2. BWC At A Glance • FY 2005 • 197,083 claims filed • 178,015 allowed claims • Total Benefits Paid: $1,982,507,006 • FY 2015 • 104,997 claims filed • 93,936 allowed claims • Total Benefits Paid: $1,648,599,923

3. BWC At A Glance • FY 2005 Open Claims • 1,792,944 • FY 2015 Open Claims • 791,638

4. BWC claims paid out by decade

5. How Does Ohio Compare • Bureau of Labor Statistics - 2014 • The national injury rate per 100 workers = 3.5 • Ohio is 2.9 • The 0.6 difference • 27,000 fewer injuries in Ohio !!! • $540,000,000 / year

10. Rebate Program Prevention Industry-Specific Safety (continued) Safety Activities • Attend industry-specific training classes • Attend Ohio Safety Congress & Expo • On-site field consultation by BWC Small employers (less than or equal to $100, 000 in payroll) = one of the above Medium employers (more than $100, 000 and up to $300,000 in payroll) = two of the above Large employers (more than $300,000 in payroll) = three of the above

11. Claims Frequency (Number of claims x 1,000,000)/amount of payroll = Claims Frequency (8 x 1,000,000) / $6,392,493 = 1.2515

12. Claims Frequency(Claims Per $1 million of Payroll)

13. Safety Grants Grants to assist employers in purchasing equipment that will substantially reduce or eliminate injuries.

14. Program Results

15. Eligibility Requirements • Be a state-fund employer; • Maintain active coverage - not more than 40 days lapsed in the prior 12 months; • Be current on all monies owed BWC; • Demonstrate the need for safety intervention; • Provide two-year baseline data.

16. 2015 Safety Intervention Grants

17. Workplace Wellness Grant To assist employers with the development and implementation of workplace wellness program

18. Eligibility Requirements • Cannot have comprehensive workplace wellness program already in place.

19. Transition Work Grants Assist employers in developing a plan that allows injured workers to heal while working.

20. Transitional Work Grants • 3 to 1 match • Employers with: • Up to 49 employees - $2,900 • 50 to 199 employees - $5,200 • 200 or more employees - $6,300 • Employers with 10 or less employees will be directed to internal BWC resources for development assistance.

21. Transitional Work Grants Eligibility Requirements: • A state fund employer • Has Active Coverage • Has been in existence for at least two years, and has reported payroll in most recent two payroll periods • Has employees other than elective coverage

22. Rebate Program Transitional Work Bonus • Incentive • Rebate up to 10% off pure-premium for established period • Claims performance calculated six months after end of program year • Amount based on percentage of feasible claims that successfully utilize program • Must be released RTW with restrictions • Example – three out of four successful • Discount = 3/4 *10% = 7.5% rebate

23. Prospective Billing • Private Employers • 2015 True-up to be completed by August 15 • Through web-site or over the telephone. • Public Employers • First 2016 Installment was due May 16 • Second 2016 Installment is due Sept. 1 • 2016 True-up to be completed by February 15, 2017

24. Payroll True-up

25. Public Employer Rate Cuts Publicemployer taxing district rate reductions (2012 – 2016) • Total average decrease to local government rates of 26.5% since 2011 • Lowest rates in more than 30 years • Total average decrease to local government rates of 26.5% since 2011 • Lowest rates in more than 30 years

26. Private Employer Rate Cuts Private employer rate reductions (2012 – 2016) Beginning July 2016, private employer RATES WILL BE 28.2% LOWER than the rates from January 2011. 1 2014 Oregon Premium Rate Ranking Study (per $100 of payroll)

28. The Pharmacy Program Mission Manage drug utilization to ensure coverage for necessary medications to allow proper care of injured workers in a fiscally responsible manner

29. BWC Fights Opioid Addiction • 2011 • 9,343 claimants considered to be opioid dependent based on their prescriptions. • 2015 • 4,723 claimants considered to be opioid dependent based on their prescriptions.

30. First Fill Rule (OAC 4123-6-21.6) • Covers certain drugs before the claim is allowed • Limited to a subset of formulary drugs in 10 day quantities. • Requires the prescriber to indicate on the prescription that it is for an industrial injury • Allows drug costs in disallowed claims to be charged to the state surplus fund.

31. A Prescription for Providing Better Care Improving BWC’s Health-Care Delivery Model

32. Key Components of BWC’s Evolving Health-Care Strategy • A physician-driven model that emphasizes quality and coordination • A system design that provides better data about which claimants are at risk • A marketplace that allows all parties to make more informed, data-driven choices • A physician network that’s managed more effectively around performance and outcomes

33. Phase 1 — The Enhanced Care Program (ECP) • Put together a pilot that improves the quality, coordination and speed with which care is provided to claimants

34. Economic Development • Transfer of experience and liability when purchasing an existing business • AC-4: Request for Business Transfer Information • Must be signed by both the business being purchased and the purchaser. • Provides the purchaser temporary access to the workers’ compensation information of the business being purchased. • Demographic information • Accounts receivable balance • Payroll and experience modification history • Most-recent quarterly claims costs • Pending audits

35. Other States Coverage

36. Eligibility Requirements • Majority of business in Ohio • Active workers’ compensation policy with BWC • No lapses in the previous 12 months (from the date the application was received) • No past-due balances at the time of application • Self-insuring employers, temporary employment agencies, staffing entities and professional employer organizations (PEOs) are not eligible.

37. Underwriting Guidelines • Experience modifier • Payroll • Certain manual class restrictions – ammunition, aviation, etc. • Other pertinent information, including: • Compliant with applicable rules and laws; • Past payment of premiums and assessments; • Safety record; • Loss history.

38. How It Will Work? • Employer will apply directly to BWC. (ACORD 130 form) • If eligible, employer will receive a quote for coverage. • If an employer chooses to purchase coverage from BWC, it will remit payment to BWC. • BWC will work through the vendor to issue a policy to cover out-of-state exposures. • All claims will be handled by the vendor.

39. Questions?