OHIO BWC Changes it’s Premium Collection Period

October, 2014 By: Mark L Newman, Cincinnati Workers’ Compensation Lawyer

Ohio BWCProspective Payment Timeline Announced for 2015!

Currently, Ohio employers pay their workers’ compensation premium for the previous six months of coverage (Example: Private employers paid in February 2013 for the July 1, 2012 to December 31, 2012 coverage period.)

This will soon change, as the BWC is transitioning to a prospective billing system that will provide more flexibility for employers while reducing overall system costs. Prospective billing is a national industry standard and builds upon ongoing efforts by BWC to modernize its operation. Under prospective billing, BWC will, like most insurance companies, collect employer premiums at the beginning of and throughout the policy period.

According to BWC the benefits of changing to the prospective payment process for Ohio employers will include:

  • More flexible payment options (e.g., monthly, quarterly, semi-annually and annually) with possible discounts for those who pay in advance.
  • Better ability to anticipate budgetary impacts of workers’ compensation program cost changes.
  • Better opportunities for BWC to provide quotes online or via phone.
  • Lower mutualized costs from employers who don’t pay premiums timely or have workers injured without coverage for employers in good standing.
  • Increases BWC’s ability to detect employer non-compliance and fraud.

The biggest benefit will be the savings. The BWC is providing Ohio employees a one-time transition credit of nearly $1.2 billion. The credit is being issued so the switch from the retrospective billing system to the prospective system will not cost the Ohio employers additional funds.

The transition is expected to become effective July 1, 2015 for private employers and January 1, 2016 for public employers.

For more information about Ohio Workers’ Compensation, contact Mark Newman, Ohio Certified Specialist Workers’ Compensation Lawyer.

 

Workers’ Compensation Benefits and Social Security Disability Benefits – How do they work together?

By Mark L. Newman, Workers’ Compensation and SSD attorneyImgae WC and SSD

If  you, as an employee, have a debilitating accident at work, there are insurance and government benefits available to you and your family. These include:

  • Workers’ Compensation
  • Social Security Disability Insurance
  • Supplemental Security Income
  • Medicare coverage

Even though the sources of these benefits differ (federal vs. state), they are interrelated and you may not be able to receive all benefits at their maximum amount. This is referred to as “offsetting.” The interrelationship with Social Security disability and Workers’ Compensation happens more frequently.

Let’s walk through what this means to you and how your benefits are re-calculated if you collect Workers’ Compensation benefits and file for Social Security Disability (SSD) benefits.

How and why would your Social Security benefit be reduced?  This is due to a law that says you can only receive up to 80% of your average current earnings (ACE) when receiving both workers’ compensation and Social Security disability benefits.  Simply stated:

If (Workers’ Comp benefit $ + SSD benefit $) > Average Current Earnings, your Social Security benefit will be reduced

So how do you calculate your average current earnings, or ACE? Your ACE is the average of either your highest consecutive 5 years of earnings at anytime during your work history, or the highest year of earnings within the 5 years prior to your disability.

For example: If you earned:

$45,000 in 2005
$47,000 in 2006
$48,000 in 2007
$50,000 in 2008
$46,000 in 2009

And you became disabled in 2010, $50,000 is the highest earnings for the 5 years before you became disabled.  To calculate your ACE, which is 80% of this number:

$50,000/12 mns = $4,166.66/mn * 80% = $3,333.33

Your monthly ACE = $3,333.33

Now, determine your monthly workers’ compensation amount.

For example: You receive $400.00 weekly in workers’ compensation benefits.  Multiply this by 4.3333333 (which is the formula Social Security uses to determine your monthly workers’ compensation benefit).

$400.00 x 4.3333333 = $1,733.33 is your monthly workers’ comp benefit in this example.

Lastly, calculate your offset or the highest SSD benefit you can receive (using this example.)

Subtract the workers’ compensation from your ACE to determine your offset.

$3,333.33 – $1,733.33 = $1,600.00

$1,600.00 represents the highest SSD benefit you could receive under this example.

Every case presents different facts.   It is crucial, however, that you report any and all changes (reductions and increases) to your workers’ compensation benefits to Social Security if you receive workers’ compensation and SSD, because each change can affect your benefit.  Keep good records of all communications regarding changes.

Since the benefits and qualifications can differ from case-to-case and state-to-state, it can be difficult to figure out the bottom line without a lawyer.

 

By Mark L. Newman, Attorney at Law | Twitter  | LinkedIn

If you have any questions about any of the information contained in this blog, contact Mark Newman via phone: 513-533-2009  or by email at mln@bpbslaw.com.  Advertisement Only

Mark L. Newman, Workers’ Compensation and SSD Newsletter

June 2014 Mark Newman Nwesletter

In my June newsletter, I discuss the following topics:

Enjoy reading and please feel free to contact me if you have any additional questions.

Contact Mark Newman for any questions you may have regarding social security disability. (513) 533-2009 | mln@bpbslaw.com | @MarkLNewmanAtty

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Mark has been my personal injury/workers compensation attorney since 2005. He truly cares about the client and it shows in his work ethic. My case was a little more complicated than most and Mark went above and beyond what I feel most attorneys would do to have the case heard. Mark continues to represent me…

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