Current through all regulations passed and filed through September 16, 2024
(A) An employer participating in
retrospective rating will pay the following:
(1) Minimum premium. The minimum premium
depends on the assigned hazard group, the per claim limit selected by the
employer, the maximum premium limit selected by the employer, and the
employer's base-rated premium or experience-rated premium. The employer's
base-rated premium or experiencerated premium is assumed to be at least the
minimum experience-rated/ base-rated premium threshold listed on the
employer's retrospective rating minimum
premium percentages table contained in the appendices to rule
4123-17-53 of the Administrative
Code. The minimum premium includes employer contributions to cover safety
and hygiene costs, surplus costs, and the cost of losses exceeding the per
claim and the maximum premium limitations and those health partnership program
costs associated with the losses exceeding the per claim and the maximum
premium limitations. The minimum premium is subject to the premium sized
adjustment described in rule
4123-17-03.3 of the
Administrative Code.
(2) Premium
based on paid losses. The employer will pay for any compensation payments,
including death and permanent total disability, and medical payments made in
covered claims. Billings to the employer will be sent annually for ten years to
collect for these medical and compensation payments.
(3) Premium based on claim reserves. The
employer will pay the value of reserves on claims evaluated as of the end of
the tenth year.
(4) Premium for
health partnership program costs on retained losses. In each evaluation period
associated with a policy year, the employer will pay an additional premium
based on a percentage,
known as the
loss conversion
factor applied to the paid losses and
claims reserves to cover the associated health
partnership program costs of those paid losses or claims reserves. Each policy year will have a specific
loss conversion factor, determined before the start of the policy year, which
will apply for the ten year retrospective period.
(B) Surplus charges in claims will not be
charged to the employer.
(C)
Individual claims costs will be limited to the per claim limit selected by the
employer. The usual experience rating limitations will not apply.
(D) The employer's maximum premium will be
limited to a percentage of its base-rated or experience-rated premium as
selected by the employer. That is, premiums based on losses, reserves and
health partnership program costs charged to the employer cannot exceed the
maximum premium minus the minimum premium. The maximum premium is subject to
the premium sized adjustment described in rule
4123-17-03.3 of the
Administrative Code
(E) The premium
for health partnership program costs on retained losses is an aggregate
calculation made on the total billings to an employer for either paid losses or
reserves. As such, premiums associated with health partnership program costs
are not allocated to individual claims, and therefore are not considered when
evaluating whether an individual claim has reached the per claim
limit.
(F) When an employer leaves
a retrospective rating program and returns to the state fund program, the
employer shall be subject to all of the provisions of rule
4123-17-03 of the Administrative
Code, classification rates.
(G) An
employer removed from retrospective rating for failure to comply with paragraph
(B) of rule
4123-17-42 of the Administrative
Code will be required to pay:
(1) Claims
costs according to this rule for all injuries incurred from the beginning of
the policy year in which the employer participated in retrospective rating
through the date of removal from the program.
(2) Full experience-rated premium from the
date of removal from retrospective rating through the remainder of the policy
year.
