Ohio Workers' Compensation Law Amended to Allow Coverage for Out-of-State Employees Injured in Ohio

Posted on August 14, 2008 by Rob Stalter

Effective September 11, 2008, Ohio has amended its Workers’ Compensation Act to provide coverage for out-of-state employees who are injured while temporarily working in Ohio. The new law will allow an out-of-state employee to receive compensation and/or benefits under Ohio’s workers’ compensation laws if the employee is a resident of a state that does not preclude the employee from receiving Ohio workers’ compensation benefits.

Under the new provisions, when a claim is filed by an out-of-state employee, the Bureau of Workers’ Compensation will be required to determine whether the claimant could have also filed a claim in another state. (Interestingly, the statute does not address whether the employer must make this determination if the employer is self-insured.) If it is determined that the claimant could have filed in another state, the claimant will have 21 days to sign a waiver stating that he or she waives the ability to file a claim in the other state unless the Ohio claim is dismissed for reasons other than on the merits. Also, the law will prohibit an employee or the employee’s dependents from receiving compensation or benefits under Ohio’s workers’ compensation laws if he or she has received a decision on the merits of a similar claim in another state. If an employee receives compensation or benefits in both Ohio and another state, the law allows the Administrator or a self-insured employer to recover the amount of compensation and benefits paid to the claimant, along with any costs and attorneys’ fees incurred by the employer in contesting the Ohio claim.

 

The new law also allows employers to obtain extraterritorial coverage through an extraterritorial insurer or through the Administrator, so long as the employer submits written notice to the Administrator of its election of such coverage. For a comprehensive summary of the law, see the Ohio Legislative Service Commission’s Bill Analysis.
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BWC Long-Term Premium Plan Impacts Group Rating Program

Posted on July 2, 2008 by Brian Hall
On June 27, 2008, the Ohio Bureau of Workers’ Compensation (BWC) Board of Directors unanimously approved the first phase of a long-term plan that will transition to a new split experience rating method for calculating premium rates that is designed to cushion the premium blow that state-funded employers frequently receive as the result of a single costly workers' compensation claim. In addition, the plan will:

-- Gradually reduce the maximum group rating discount from 85 to 77%beginning July 1, 2009, with a 20% annual cap on premium rate increases caused by these discount reductions;

-- Cap premium increases at 100% for all employers, including those that have been removed from a group; and

-- Develop additional inducements for employers to manage costs and improve workplace safety.

According to the BWC's press release, the long-term plan proposes a gradual transition to the new experience rating method over three years. The first phase of the plan was approved with further study on the group rating rules and governance to be complete by 2009. Other aspects of the long-term plan, such as an additional discount reduction in 2010 and the rating transition in 2011 will be addressed after further testing and impact analysis are complete.

The plan looks to be a step in the right direction for Ohio's state-funded employers. At a minimum, the BWC expects that the changes ultimately will reduce base rates by 23 to 27%. Though it continues the recent reductions in the discounts associated with the group rating program, the plan should make it more difficult for employers to be removed from a group and, for those that are removed, less costly.
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