Refund checks for 2010 group retro participants have been mailed by the BWC. Sheakley is proud to report that all our clients in the program received significantly better refunds than originally projected:
Commercial group — 22% more
Manufacturing group — 25% more
Service group — 25% more
Construction group — 60% more
This refund is in response to the BWC’s first year evaluation of the program. There will be two additional evaluation periods, one in Fall 2013 and another in Fall 2014, with even more refund potential.
The group retrospective rating program, commonly referred to as, “group retro,” was first offered to Ohio employers for the 2009-10 rate year. Since its launch, the program has grown from only 365 participants in 2009 to 4,085 for the 2012-13 rate year. Sheakley currently represents 1,530 participants, more than any other TPA.
Unlike group rating, where the group discount is reflected on premium statements during the participating rate year, the group retro program refund is provided to participants after the close of the rate year. Once enrolled in a group retro program, participants pay their BWC premium as if they were not in a savings program. This is a significant difference between group retro and group rating. In a group rating program the group discount is taken off BWC premium during the policy year. In a group retro program, there is not a discount during the rate year. Instead, participants are evaluated to receive a refund 12 months after the end of the policy year.
Twelve months after the end of the policy year, the BWC reviews the performance of the group. This means they look to see if the claims costs are what they were expected to be, in which case participants get a refund for the amount the group’s administrator estimated. If the claims costs are lower than what they were expected to be, the refund will be more than what the group administrator estimated. The BWC then recalculates premium again at 24 and 36 months and issues refunds or charge assessments accordingly. This means, in a well-managed group, you get refund checks for three years in a row.