What is Group Rating?
With the increasing cost of workers’ comp and decreasing discounts, Group-experience rating is the simplest program to enroll and participate in, and offers one of the largest achievable discounts. Groups are formed by taking companies within the same industry with similar claims experience and placing them together. Within each group, there is a further breakdown of tiers based on the discount that they qualify for. Companies will be placed within the tier they most qualify for. ECP has some of the most stringent qualifying tolerances in the industry resulting in extremely accurate results.
Why Group Rating?
Group Rating is the only BWC program that can offer substantial discounts off base rates. There are several programs available that require much more time, money, and provide minimal discounts, and these programs are not always compatible with each other. Companies who qualify for Group Rating, but do not qualify for the max discount may also take advantage of some other available programs to achieve closer to the maximum of -53%.
Why Choose ECP for Group Rating?
ECP strives to stand out among Ohio Third Party Administrators. We offer our potential and current clients more service for their money along with solutions to reduce the financial burden of workers’ compensation. Just a few ways we do this:
- Your fee includes TPA Services, Attorney Representation at Industrial Commission Hearings, and Unemployment Consulting for no additional charge
- Historically, 99% accurate in projected rates
- Quoted fees are annual and include association dues, so a separate association invoice will not be sent
- You will be assigned a specific contact to handle your claims. There will be no need for dealing with a different person every time you call, should a claim occur
- Our workers’ compensation representatives have over 200 years combined experience
- Our Group has over 8000 companies
- Each eligible client is reviewed for opportunities for additional premium reduction
- ECP offers additional administrative solutions that can help save your company more money
What is a Sponsor Organization or Association?
A sponsor organization is an entity that a company must join to achieve a Group Rating discount. Each Third Party Administrator will have one or multiple sponsors that they work with in order to provide as many discount tiers as possible to accommodate group members. Most sponsor organizations require association dues. This can be included in your cost to participate in Group Rating or billed separately depending on the TPA and sponsor. ECP includes the association dues with their Group Rating fees.
The Importance of Attorney Representation vs. Claims Hearing Representation
The difference between judgments for an employer vs. an employee could be determined by your representation. The injured worker will typically have an attorney, why should you be represented only by a hearing representative? ECP includes attorney representation for all Group Rating participants. Attorneys are able to do the following:
- Examine or cross-examine the claimant or witnesses
- Cite, file or interpret statutory or administrative provisions, administrative rulings or case law
- Give or make legal interpretations with respect to testimony and medical evidence
- Comment upon or give opinions with respect to evidence, credibility of witnesses and the weight of evidence
- Provide legal advice to employers
- Cite case law and opinions when a claim is initially filed.
What is the Group Rating Timeline?
- April 2013 – December 2013 (Prior Rate Year) – The process begins with allowing TPA’s to obtain temporary authorization to review the BWC records for your group eligibility (AC-3). This can be obtained verbally or written. Receiving multiple reviews does not impact your rates.
Download the AC-3 form.
- September 2013 – February 2014 (Prior Rate Year) – Group Rating packets will be sent out if your company qualifies. This packet will include your projected* rates, your fee to join the program, and agreement, as well as state mandated documents to name the TPA of your choosing as your group representative and TPA.
- February 15, 2014 – Deadline to return Group acceptance to ECP.
- February 28, 2014 – Deadline for ECP to turn in Group Roster to the BWC.
- July 1, 2014 – June 30, 2015 – Policy year Group Rate is in effect.
- February 2015 and August 2015 – Premium payment to the BWC due with the discounted Group Rates reflected.
* Rates are projected when quotes are sent. ECP is typically within 1% of accuracy on projected rates.
How will it affect me if another Group member has a claim?
Group is a year to year enrollment. Groups are formed prior to each rating year based on historical experience. Only claims that occurred prior to the Group Rating year can impact the current Group. We at ECP, take extraordinary measures to protect our groups, their tiers, and thus our clients when placing them in groups. It is important when selecting a group, to choose a TPA, such as ECP, who requires a questionnaire to be completed prior to accepting a company into their group. Prior to accepting a company, we inquire about on going claim activity as well as corporate structure changes i.e. pending court cases, possible acquisitions, etc.
In the event that a claim should occur during a Group Rating year, the impact of the claim will not affect any members of the formed Group; it may however, affect the eligibility of that company for the following years. Any employer in Group Rating with a claim is required to complete an online class to satisfy BWC requirements. ECP hosts this for our clients.
Learn more: Premium Reduction