Current through all regulations passed and filed through September 16, 2024
(A) Definitions.
As used in this rule:
(1) "Experience period" means:
(a) For private employer policy years
commencing on or after July 1, 2016, the oldest four of the latest five
completed policy years immediately preceding the beginning of the policy year
to which a rate is applicable.
(b)
For public employer taxing districts policy years commencing on or after
January 1, 2016, the oldest four of the last five completed calendar years
immediately preceding the beginning of the policy year to which the rate is
applicable.
(2)
"Inactive employer" means an employer that satisfies all the following
criteria:
(a) The employer is assigned a
"cancelled" policy status or a "no coverage" policy, and
(b) As of the last day of September for
private employers, or the last day of March for public employers, the employer
is not paying premiums or assessments to the Ohio state insurance fund under
either its own identity, the identity of any successor entity, or as a
self-insured entity.
(3)
"Significant negative impact" occurs when:
(a)
An inactive employer reported ten per cent or more of the payroll in a manual
classification during the experience period, and
(b) The base rate for the manual
classification is higher by including the payroll,
losses, and costs of such inactive employer in
the calculation of that manual classification base rate, than the manual
classification base rate is when the payroll,
losses,
and costs of the inactive employer are excluded. For the purpose of
determining "significant negative impact," the bureau of workers' compensation shall test each inactive
employer separately.
(B) An employer's premium rates shall be the
manual classification base rates as provided under rules 4123-17-02,
4123-17-06, and
4123-17-34 of the Administrative
Code for each of the employer's manual classifications except as modified by
the employer's experience rating, and shall apply for the twelve-month period
beginning on the first of July for private employers and for the calendar year
beginning on the first of January for public employer taxing districts.
(1) In calculating the manual classification
base rate and the expected loss rate under this rule, the bureau shall exclude
the experience in a manual classification of an inactive employer if the
inclusion of that inactive employer's experience in that manual classification
would have a significant negative impact upon the remaining employers in a
particular manual classification.
(2) The calculation of the manual
classification base rate and the expected loss rate, as modified in paragraph
(B)(1) of this rule, shall be applied to all employers reporting payroll in the
manual classification.
(C) An experience-rated employer's manual
classification experience-modified rate shall be determined by multiplying its
experience modification (EM) as defined in paragraph (D) of this rule times the
manual classification base rate for each of the employer's assigned manual
classifications.
(D) An employer's
EM is determined in accordance with the following formula:
Click
to view image
TML = Actual losses of the employer for the experience period,
limited in accordance with paragraph (E)(1) of this rule.
TLL = Total limited losses = TEL multiplied by LLR
TEL = Total expected losses, determined by applying expected
loss rate to the payroll of each manual classification in the employer's
experience period, as provided in the appendix to rule
4123-17-05.1 of the
Administrative Code for private employers and in the appendix to rule
4123-17-33.1 of the
Administrative Code for public employer taxing districts. The total expected
losses are then used to determine credibility group, credibility, and the
maximum value of a loss.
LLR = Limited loss ratio, calculated for each credibility group
within each industry group, as provided in appendix B to rule
4123-17-05 of the Administrative
Code for private employers and appendix B to rule
4123-17-33 of the Administrative
Code for public employer taxing districts.
C = Credibility given to an employer's own experience,
determined by the employer's total expected losses, as provided in the appendix
to rule 4123-17-05.1 of the
Administrative Code for private employers and in the appendix to rule
4123-17-33.1 of the
Administrative Code for public employer taxing districts.
(E) For a private employer that is not
an alternate employer organization as defined in
section 4133.01 of the Revised Code
or a professional employer organization as defined in section
4125.01 of the Revised Code, and
who is individually experience rated, individually retrospective rated, group
retrospective rated, or in a deductible program under rule
4123-17-72 of the Administrative
Code, the employer's EM as calculated in paragraph (D) of this rule is further
adjusted by multiplying the EM adjustment factor as provided in appendix A to
this rule and the employer's EM.
(F) For a public employer taxing district
employer that is not an alternate employer organization
as defined in section
4133.01 of the Revised Code
or a professional employer organization as defined in section
4125.01 of the Revised Code, and
who is individually experience rated, individually retrospective rated, group
retrospective rated, or in a deductible program under rule
4123-17-72 of the Administrative
Code, the employer's EM as calculated in paragraph (D) of this rule is further
adjusted by multiplying the EM adjustment factor as provided in appendix B to
this rule and the employer's EM.
(G) An employers' EM shall be subject to the
following conditions and limitations:
(1)
Actual losses shall include all incurred costs but shall be limited as provided
in rule 4123-17-12 of the Administrative
Code, and at the claim level to the amounts provided in the appendix to rule
4123-17-05.1 of the
Administrative Code for private employers and the appendix to rule
4123-17-33.1 of the
Administrative Code for public employer taxing districts according to the total
expected losses of an employer; and
(2) An employer shall not be eligible for
experience modification of manual classification base rates unless its expected
losses are at least the minimum amount as provided in the appendix to rule
4123-17-05.1 of the
Administrative Code for private employers and the appendix to rule
4123-17-33.1 of the
Administrative Code for public employer taxing districts.
(3) The year-over-year increase in an
employer's EM may be limited pursuant to rule
4123-17-03.2 of the
Administrative Code.
(4) Actual
losses where COVID-19 was contracted by an employee arising during the period
between the emergency declared by executive order 2020-01D, issued March 9,
2020 and July 2, 2021 which is fourteen days after the Executive Order was
repealed, shall be excluded from employer's experience for the purpose of
experience rating calculations.
(5)
Actual losses occurring on or after March 23, 2022 where a student is a
participant of the work-based learning program shall be excluded from an employer's
experience for the purpose of experience rating calculations if both of the
following conditions apply:
(a) The employer
provides work-based learning experiences for students enrolled in a
career-technical education program approved under
section 3317.161 of the Revised Code;
and
(b) The claim is based on a
student's injury, occupational disease, or death sustained in the course of and
arising out of the student's participation in the employer's work-based
learning experience.
