Importance of EHS and Group Rating Eligibility for Manufacturers in Ohio

There’s good news for Ohio’s private employers: The BWC Board of Directors approved a 6% rate reduction at its February 2025 meeting, which follows a 7% reduction approved in 2024. However, many businesses are still missing out on valuable rate reduction programs, leaving meaningful savings on the table when it comes to workers’ compensation premiums.

The BWC uses several factors to calculate rates, including claims history and the level of participation in BWC programs. You have control over these factors and can take actions to save on your workers’ compensation costs. For example, you can significantly reduce premiums by participating in a BWC group rating program. To be eligible, though, you must implement strong environmental, health, and safety (EHS) programs to reduce workplace illnesses and injuries.

A trusted third-party administrator (TPA) can help you develop effective EHS programs and meet other eligibility requirements, so you can maximize savings through group rating participation.

How Group Rating Works

Group rating programs create a shared risk pool that combines the claims experiences of industries with similar risk profiles. The experience modifier used to determine rates is based on the claims experience of the entire group rather than each business individually. Note that the BWC does not create these groups; they’re formed by sponsoring organizations, such as trade associations and chambers of commerce. A group with an overall good safety record will see reduced rates for all participating businesses. Pooling risk is particularly beneficial to industries like manufacturing, which have a large workforce and several reputable trade associations that can serve as sponsors.

The BWC offers two types of risk-pooling options. With the Group-Experience Rating program, employers will benefit from an upfront rate reduction, which will be reflected in the business's premium statements. With the Group-Retrospective Rating program, employers will pay the full premium in advance and then receive a refund based on the group’s performance. With the former, employers will know ahead of time how much to budget for workers’ compensation premiums, but the latter offers the potential for greater savings.

To qualify for these programs, employers must have a better-than-average claim history. Maintaining vigorous EHS programs can help reduce the claims for work-related illnesses and injuries that may make your business ineligible. More importantly, a focus on EHS will create a safer and more productive environment for your employees.

Build a Culture of Safety to Improve Your Claim History

If your business has a worse-than-average claim history that makes you ineligible for premium discount programs, your EHS leader will play a critical role in turning this around. Their team will analyze past claims to identify recurring safety problems, pinpoint hazards, and implement effective solutions. Efforts to improve safety should be reinforced with regular training designed to meet the specific needs of your company. Employees should also be encouraged to report “close calls,” or accidents that almost happened, so potential hazards can be addressed before an employee is injured.

Take Advantage of Ohio BWC Safety Services

The BWC continually works to improve safety, thereby cutting costs, and has built programs to assist businesses in creating safe workplace environments. Two effective programs are the Substance Use Prevention and Recovery (SUPR) Program and local safety councils.

Businesses participating in SUPR receive comprehensive support and resources to foster a drug-free workplace, helping reduce incidents related to alcohol and substance abuse on the job. Enrolled businesses must develop drug-free workplace policies and provide relevant training. The program also requires drug testing and services for employees with drug or alcohol abuse problems. The BWC program reimburses employers for the costs of developing drug-free workplace policies, implementing a drug testing program, and providing training for supervisors and employees.

Joining a local safety council will give you access to resources, education, and training to improve the health and safety of your workplace. You will network with other employers to learn their best practices for reducing on-the-job injuries. Businesses that meet the attendance requirement of at least ten meetings per year will earn a 3% rebate on their workers' compensation premiums.

Reduce Claim Costs with a Return-to-Work Program

Preventing workplace injuries and illnesses is a priority, but accidents will still happen. The focus will then shift to seeing that the injured worker gets medical attention and returns to work as soon as possible. This requires a coordinated effort between the worker, your company’s return-to-work team, medical providers, and the BWC. The length of time that an injured employee is out of work, the greater the costs of their claim, so plans that facilitate recovery can lessen the impact on your business’s claim experience and eligibility for rate reduction programs. A speedy recovery is also crucial for the worker’s overall well-being and sense of connection to the workplace community.

The return-to-work team, typically comprising HR personnel and the worker’s supervisor, should maintain contact with the injured worker and monitor their progress. With approval from the worker’s doctor, the employee may return to work before they’ve fully recovered in a light-duty capacity, or they may be assigned to an alternative, less demanding position. The team needs to identify these situations and prepare for the worker’s transition back to work. Fortunately, the BWC offers Transitional Work Grants to help out employers.

Work With an Experienced Third-Party Administrator

To qualify for the Group-Experience or Group-Retrospective rating programs, a business must correct safety issues, participate in safety training, and develop return-to-work plans. It must also ensure that all bookkeeping and reports required by the BWC are accurate and submitted on time. This is a significant burden to place on an HR department, but a TPA can lighten the load. They will develop risk management strategies and identify the best program for your business.

Why Choose Compensation Solutions, Inc.

Selecting a TPA is similar to hiring a new employee: They are a professional who is experienced and knowledgeable and will become part of your team and serve as your advocate with the BWC. You should also be comfortable with your TPA; you should be able to trust that they are looking out for your business and your employees.

Compensation Solutions, Inc. (CSI) has decades of experience helping manufacturers with their Ohio BWC claims processing and risk management needs, so it has a well-earned reputation as an industry leader. When you partner with CSI, you will be assigned a dedicated representative who understands your needs, knows the status of your workers’ comp claims, and has in-depth knowledge of BWC programs that will save you money.

Taking advantage of Ohio BWC’s group rating programs can slash your premiums, but you need to meet specific criteria to be eligible. Strong in-house EHS programs and participation in BWC safety programs will help your business meet the requirements for discounted rate programs, and CSI can help.

Workplace safety and workers’ compensation are closely linked. Ohio manufacturing businesses can reduce workers’ compensation claims and premium costs by prioritizing proactive EHS strategies and injury prevention. It’s time to bridge the gap between safety and savings. Protect your workforce and reduce your costs. Discover how CSI can help you lower your workers’ compensation expenses.