How Workers’ Comp Works for Ohio Businesses
Although health insurance and workers’ compensation coverage are two separate entities, we thought we would help break down the main points. ARC was recently joined by Sedgewick to discuss workers’ compensation and how to maximize your savings. Check it out below!
The majority of states operate an open market workers’ compensation system, much like healthcare. However, Ohio is one of only three remaining monopolistic states that derive their coverage from one entity. In Ohio, that entity is the Ohio Bureau of Workers’ Compensation (BWC). This means that Ohio employers cannot shop for rates in the same manner that they can shop for health insurance. Workers’ compensation rates are fixed and established by the Bureau and are subject to change periodically. The rates per company are based on expected loss ratio versus the actual losses incurred in the event of a workplace injury or accident.
The role of a third-party administrator, like Sedgwick, is to assist Ohio employers with the administration of their BWC policy. This would include group rating, policy management, BWC discount programs, claims settlements, hearing representation, and much more. While a third-party administrator is not mandatory in the state of Ohio, it is a very beneficial resource to ensure that all potential BWC discounts are applied, complicated claim issues are addressed, and filing deadlines are promptly met.
In order to engage with a third-party administrator, an employer will need to complete an AC-3 authorization form. This form will allow the third0party administrator to examine claim history to obtain a better understanding of the employers workers’ compensation experience. The third-party administrator will then discuss fees and let you know the next steps.
If you are interested in learning more about Sedgewick’s services, feel free to reach out to your client relations advisor and they will assist you.