WorkersCompensation.com's CompNewsNetwork: OH BWC BoD Tackles Busy Agenda

OH BWC BoD Tackles Busy Agenda
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compnewsnetwork on 03 November, 2009 12:47:00
 
Columbus, OH (CompNewsNetwork) - The Ohio Bureau of Workers’ Compensation
(BWC) Board of Directors today streamlined rules related to medical coverage,
hired an investment manager and reduced the credibility table which is used to
determine the maximum discount for group-rated employers. The new table reduces
the maximum discount to 65 percent, effective July 1, 2010. The current maximum
discount is 77 percent. This revision also lowers the minimum qualification for
experience adjustments, an action that will positively impact the rates of
smaller employers with strong safety records.
“Today’s vote represents another step in our efforts to bring equity to
what each Ohio employer pays for their workers’ compensation insurance
coverage,” said BWC Administrator Marsha Ryan. “There are many factors to
consider when making decisions that obviously impact the bottom line of Ohio
business owners. I’m confident our rate reform efforts are having a positive
impact on the majority of employers, and will solidify Ohio’s workers’
compensation services and offerings for years to come.”
BWC’s rate reform efforts were set in motion by changes enacted by the 127th
General Assembly’s House Bill 100, passed in June 2007. The legislation
required a comprehensive study of BWC’s rate setting methods, including the
group rating program. Today’s action is part of the Board of Directors’
multi-year plan to bring stability, fairness and equity to all employers. In
addition to lowering the maximum group discount, the Board of Directors
approved modifications to the break even factor (BEF), which was established in
April. The BEF adjusts the discount level based on the overall risk of the group
to ensure its premiums reflect their risk. The BEF is a crucial component of
rate reform because it brings the premium paid by group-rated employers more in
line with their claim costs while still allowing BWC to continue offering
significant group discounts.
It should be noted that changes in the maximum discount are not enough to make
the group rating program actuarially sound. All studies on group rating
indicate that groups should maintain the same membership for many years to
establish a solid experience history. They should also bring together more
similar businesses with common safety needs. This homogeneity of group
membership will bring more stability to group rates in the future. BWC is
currently exploring rules designed to maintain continuity in group membership
and to increase homogeneity within the groups.
In other business, the board approved a new inpatient hospital fee schedule
which supports BWC’s guiding principle to ensure access to quality care for
Ohio’s injured workers. The fee schedule establishes the maximum
reimbursement allowed for medical treatments and services related to hospital
stays and will increase overall reimbursement rates by 2.9 percent. Inpatient
hospitalization may be the first treatment following an injury, or part of
later treatment necessary to return an injured worker to employment.
“Effective inpatient services are critical as they are necessary for our most
seriously injured workers,” said Bob Coury, BWC’s Chief of Medical Services.
The board also adopted BWC’s recommended changes to Chapter 6 Health
Partnership Program rules and Chapter 7 Payments to Healthcare Providers rules.
Chapter 6 and 7 rules govern provider credentialing, access, oversight and
reimbursement; Qualified Health Plans, and Managed Care Organization services.
The review covered 130 rules, of which the adopted rule recommendations
rescinded 30 rules, amended 46 rules, and combined combining 37 others.
The board also adopted new rules related to medical providers including the
certification of providers participating in the Health Partnership Program
(HPP) and the Quality Health Program (QHP). The HPP and QHP are the managed
care system which oversees the medical treatment of injured workers, and
provider access to the programs. Also adopted were rules related to the Managed
Care Organizations (MCO) including MCO participation, application,
certification, payment, scope of services, medical treatment guidelines, and
MCO payment to providers within these programs. All rules were developed within
the guidelines established by Governor Ted Strickland’s Common Sense Business
Regulations to amend or rescind contradictory, redundant, and needlessly
burdensome rules.
The Board of Directors also approved the hiring of State Street Global Advisors
as a BWC Passive Index Manager for the State Insurance Fund (SIF). State Street
responded to a request for proposal posted by BWC on July 2, 2009. State Street
will manage assets of the SIF under the supervision of the BWC Investment
Division.
Finally, the board hosted a public forum this morning, which provided an
opportunity for Ohio business owners, medical providers, injured workers and
other interested parties to address them on the services and future direction
of BWC’s Division of Safety and Hygiene. More than 25 speakers discussed how
BWC’s safety services impact their business.
The next BWC Board of Directors meeting will be held Friday, November 20, 2009
at 8 a.m. in Room 3, Level 2 of the William Green Building, located at 30 W.
Spring St., Columbus.