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Published on Jan 4
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As your advocate in the workers’ compensation system, your third-party administrator (TPA) helps to reduce your stress while working to provide your company with the most beneficial annual premium cost-savings opportunities. The Ohio Bureau of Workers’ Compensation may not require you to have a TPA in your corner, but by allowing your business access to cost containment strategies, a partnership with a TPA can often pay for itself. Here are three TPA cost saving opportunities you should discuss with any TPAs you are considering working with.
Grow Ohio Incentive Program
Are you a new employer in Ohio? This program, one of the popular TPA cost saving opportunities for new Ohio businesses, offers them chance to secure savings opportunities on their workers’ compensation premiums when they start their businesses. Employers can either join a group rating program or take an automatic 25% discount on their premium. Employers choosing to join a group rating program must be a member of a sponsoring organization. To be eligible for Grow Ohio discounts, employers must comply with BWC safety requirements.
Group Rating
Group experience rating programs allow employers who operate similar businesses to group together to achieve lower premium rates than they could through individual rating. Savings opportunities vary depending on claim experience, industry, and payroll history. All participants must be a member of a sponsoring organization, like a chamber of commerce. Enrollment is for one rate year only and can be renewed annually, depending on eligibility.
Group Retrospective Rating
The group retrospective rating program is a voluntary, performance-based incentive program for employers who practice workplace safety and effective claims management. Depending on the performance of the group, participants can earn premium refunds or receive assessments. Similar to group rating, employers are grouped together by like industries and must be members of a sponsoring organization. While enrolled, employers continue to pay their individual premiums established by the Ohio BWC. The BWC will evaluate groups and issue rebates or assessments at 12, 24 and 36 months following the end of the enrolled policy year. Group retrospective rating can offer a substantial savings opportunity for employers who do not qualify for a group rating program.
Saving you money and watching your back
The Ohio BWC may not require your company to use one, but the TPA cost savings opportunities available to you and the expertise of these groups can lead to reduced risk and lower costs for your company. Partnering with a TPA is an investment in your business’ future that can mean a safer workplace for your employees and less spent on claims administration for you. While the Bureau of Workers’ Compensation looks out for the interests of your injured employees, your TPA will help you save money and provide assistance with claims.
Learn more about Workers’ Compensation today by contacting a Sheakley WC professional. Stay up-to-date on all things Sheakley by subscribing to our blog and following us on social media. What TPA cost saving opportunities has your company used in the past? Join in the discussion by commenting below.
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