BWC Employer Programs

On 1/22/2010 BWC’s Board of Directors approved a Large Deductible Program that will be available beginning 7/1/2010.  This program permits an employer to choose a per claim deductible level in exchange for a Premium Discount depending on the size of the company and deductible chosen.  Companies in the program are billed by BWC for all claims costs paid on claims that occur during the program period up to the deductible level.  The Large Deductible per claim levels are $25,000, $50,000, $100,000 and $200,000.  There are already small deductible claim levels in place that are less than $25,000 and those have been available since 7/1/2009.

BWC had recently indicated they were planning to roll out a new program named the Individual Incurred Loss Retro Program.  At the 1/22/2010 BWC Board meeting BWC stated they were having actuarial problems with parts of the program and there was a chance the new Program would not be available on 7/1/2010 as planned and may be available at a later date or possibly not at all if the issues cannot be corrected.  This program lets companies agree to be reviewed at three later future dates and if their actual claims costs at those times are less than expected they can receive a premium rebate or if their claims costs are higher than expected they can receive a premium billing.

BWC is currently in the process of revising their Drug-Free Workplace Program and eliminating the Drug-Free EZ Program.  At a BWC committee meeting on 1/21/2010, BWC stated the new program will be named Drug-Free Safety Program and is expected to be available 7/1/2010.  Nothing has been finalized yet, but potential highlights are one program with two levels (Basic and Advanced), reduced requirements and participation discounts that can be received every year the employers meet the requirements with no limit and no end to the program.

Workers’ Compensation Legislation:

Senate Bill 213 (SB213):  This potential law change if approved by the legislature will prevent BWC from taking the maximum discount below 65% for two years and would eliminate the Break Even Factor which is a penalty that is being charged to Group employers for 7/1/2009 and 7/1/2010.  The Bill also would require any dividends BWC wants to give to be approved by the Senate and House of Representatives before being paid to employers.  On Wednesday 1/27/10, SB213 was approved by the Senate.