Stepping Stones. CareWorks Consultants Inc Glendon Court Dublin, Ohio

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1 Winter 2010 Stepping Stones CareWorks Consultants Inc Glendon Court Dublin, Ohio CAREWORKS CONSULTANTS SAFETY SEMINARS SCHEDULED FOR SPRING Throughout the month of April, CareWorks Consultants will hold safety seminars and recommends attendance to small business owners, workers compensation coordinators and human resource officials. CareWorks Consultants is planning to hold annual safety seminars throughout Ohio during the month of April. These seminars are intended to guide employers through the different aspects of Ohio s workers compensation system. In order to better educate yourself about the ins and outs of the system, please plan to attend one of the following seminars. n April 12 Akron Hilton-Akron/Fairlawn 3180 West Market Street Akron, Ohio n April 13 Eastlake Radisson Hotel & Suites Curtis Boulevard Eastlake, Ohio n April 14 Westlake Westlake Holiday Inn 1100 Crocker Road Westlake, Ohio n April 15 Perrysburg Holiday Inn, French Quarter Fremont Pike Perrysburg, Ohio CareWorks Consultants safety seminars are designed to make workers compensation easier. n April 19 Dublin Embassy Suites 5100 Upper Metro Place Dublin, Ohio n April 20 Middletown The Manchester 1027 Manchester Avenue Middletown, Ohio n April 21 Lancaster Cheers & Lakeside Chalet 1211 Coonpath Road, NW Lancaster, Ohio n April 22 Dublin Embassy Suites 5100 Upper Metro Place Dublin, Ohio The seminars will consist of sessions focusing on accident investigation, record keeping, managed care organizations, rates, claims and hearings. There will also be a panel discussion on BWC programs. Invitations to these seminars will be mailed to our customers soon. These invitations will provide more detailed information on cost, material to be presented and registration information. If you have any questions, please contact CareWorks Consultants at Inside This Issue... 2 Cost Control Options Outside of Group 3 OSHA & Highway Construction Safety 3 Web Watch 4 Interstate Coverage Laws 4 Important Dates 5 Safety Webinars 6 BWC Safety Congress

2 COST CONTROL OPTIONS AVAILABLE FOR EMPLOYERS THROUGH OHIO BWC With their most recent BWC premium payment, many employers have seen for the first time the impact of recent changes made by BWC as part of its rate reform efforts. Nearly 100,000 group-rated employers saw their rates increase as a result of reductions to the credibility table (a significant factor in determining group rating discounts) and the implementation of a break-even factor applied to all group rating plans. Whether you are in a group rating plan or not, the workers compensation environment in Ohio is changing and these changes are undoubtedly leaving many employers wondering what is the best strategy to control their workers compensation costs. With the group rating filing deadline now behind us for another year, here is an overview of alternative rating options available to employers: n One-Claim Program Application Deadline March 31, 2010 The One Claim Program is designed for employers removed from group rating due to one significant claim entering their experience period. Employers enrolled in this program earn a 40 percent discount on premiums. Employers taking advantage of this program must attend two full-day safety training courses during the policy year. The One Claim Program discount is stackable with all other BWC rating programs (except for group rating), as well as safety council discounts. n Group Retrospective Rating Program Application Deadline April 30, 2010 Group-retrospective rating is a new voluntary performance-based incentive program that gives employers an opportunity to earn premium rebates as high as 60 percent higher than the current 51 percent maximum discount available through traditional group rating. Group retrospective rating functions much differently than traditional groups in that the premium discounts come in the form of back-end (i.e. retrospective ) rebates rather than up-front discounts. Further, rebates are a direct reflection of the performance of the employers in the group. Employers continue to pay their own individual premiums and then have the opportunity to receive either a premium refund, or an assessment, depending on the performance of the group. n 100% EM Cap Application Deadline September 30, 2010 The 100% EM Cap program was established last year to minimize the effects of a significant premium increase for employers who became penalty-rated. This program is ideal for many employers who participated in group rating in 2009 but no longer qualify for A significant upfront premium discount is provided in exchange for safety program improvements. In this scenario, BWC will cap the increase to an employer s experience modifier (EM) at 100% of the employer s previous year EM. Qualifying employers must agree to implement portions of BWC s 10-Step Business Plan for Safety to maintain their discount. In year one of the cap, five of the steps must be implemented. If the cap benefits the employer a second year, all 10 steps must be implemented. n Deductible Program Application Deadline June 1, 2010 BWC's Deductible Program provides up-front premium discounts in exchange for an employer accepting the risk of paying a pre-determined amount of the costs for each claim. Discounts range from 1.4 to 57 percent of premium depending on an employer s industry and chosen perclaim deductible level. Employers who effectively manage their workers compensation claims and related costs will see a financial benefit. However, if an employer does not manage claim costs, the deductible may exceed premium savings. There are no formal safety requirements for the deductible program and discounts can be stacked with group rating, One Claim Program, 100% EM Cap, Drug- Free Workplace and Safety Council discounts. n DFWP & DF-EZ Application Deadlines June 30, 2010 (7/1/10 Start Date) & December 31, 2010 (1/1/11 Start Date) The Drug-Free Workplace Program (DFWP) offers a premium discount to eligible employers for implementing a program addressing workplace use and misuse of alcohol and other drugs, including prescription, over-the-counter and illegal drug abuse. Participants must develop a written substance policy and conduct certain types of testing. Discounts range from 10 to 20 percent depending on the level of participation. The Drug-Free EZ Program is a streamlined version of the program designed for businesses with an average of 25 or fewer full-time employees. For more information, please contact CareWorks Consultants at and ask to speak to someone in our sales department.

3 OSHA CLARIFIES HIGHWAY CONSTRUCTION RULE REQUIRING HIGH-VISIBILITY GARMENT It is well recognized that workers involved in highway or road construction work zones need protection from traffic and construction equipment, yet there has been ambiguity about formal regulations. The confusion stems from seemingly conflicting views expressed by the Occupational Safety & Health Administration (OSHA). In 2004, OSHA issued a letter that seemed to defer to the Manual on Uniform Traffic Control Devices (MUTCD) issued by the Federal Highway Administration. Referring to this Manual, OSHA said it reflects industry practice with respect to identifying the types of situations where these workers need high-visibility garments and stated that the General Duty Clause of OSHA regulations required the use of these garments in such cases. While the MUTCD requires high-visibility garments in certain circumstances, OSHA applied this to all highway construction workers. This led to a case before the Occupational Safety and Health Review Commission on appeal. In the Review Commission s ruling in this case, it determined that OSHA did not provide construction employers with fair notice of a requirement for employees in highway construction work zones to wear high-visibility garments. In addition, the Review Commission s interpretation of the letter differed from OSHA s intent. As a result of this case, OSHA has revised its rule on the use of highvisibility garments in highway work zones. In OSHA s recent clarification, it states that these construction employees are required to wear high-visibility garments in two specific circumstances: n When they work as flaggers; and, n When they are exposed to public vehicular traffic in the vicinity of excavations. However, OSHA goes on to say that other construction workers in highway/road construction work zones are also exposed to the danger of being struck by the vehicles operating near them. For such workers, the General Duty Clause requires similar protection. For more information on the new rule, please contact our safety partner, RiskControl360, toll-free at If you own or operate a construction business, be sure you are up to date on OSHA s standards for visibility garments. Web Watch n This website provides networking opportunities for individuals and businesses. n Build a profile for your company or yourself and connect to past partners or offer business recommendations for companies or individuals you would like to promote. n Research existing company demographics and information, including financial data for publicly held firms. n Serves as an important reference as tax season approaches. n Find information pertinent to both businesses and individuals, including the ability to search for commonly used forms and publications. n A special section dedicated to small business owners and the self employed offers information and links to the State of Ohio Department of Taxation, Department of Commerce and Unemployment Office.

4 SMALL BUSINESSES SEE CHANGES TO INTERSTATE COVERAGE LAWS This article, written by Tom Sant, Counsel for Bricker & Eckler LLP, covers the change to laws governing workers compensation coverage for employees working across state lines. A law designed to eliminate double payment of workers compensation premiums by Ohio-based employers for work performed in other states has led to an unintended consequence of creating additional administrative hassle. Senate Bill 334 (SB 334), which took effect last fall, allows employers to separate their payroll (Ohio and non-ohio) and pay premiums to the Ohio Bureau of Workers Compensation (BWC) only for the Ohio portion. To take advantage of this law, however, employers need to have active workers compensation coverage in the other states in which they are working. It is this requirement for other states coverage that is creating the challenge. Historically, this has not been a problem as Ohio and other states offered reciprocity to each other other states would recognize Ohio workers compensation coverage if Ohio recognized that state s coverage for employers temporarily working in Ohio. However, SB 334 created a time limit of 90 days for Ohio s recognition of other states coverage. As a result of this newly-established time limit, many states have modified their coverage requirements to mandate coverage (in many cases, even if you are only in the state for one day). It is critical for employers doing work in other states to be aware of those states requirements. As a significant portion of out-of-state work by Ohio employers will occur within states bordering Ohio, here is a summary of those states interstate jurisdiction laws and contact information: n Indiana claims no jurisdiction for out-of-state employers for workers compensation coverage. Ohio employers working in Indiana are covered by Ohio workers compensation regardless of duration. n Kentucky requires out-ofstate employers to obtain coverage regardless of duration of the work performed. Visit for more details. n Michigan requires out-ofstate employers to obtain coverage regardless of duration of the work performed. Visit or call (517) for more details. n Pennsylvania requires out-ofstate employers to obtain coverage regardless of duration of the work performed. Call (717) for more details. n West Virgina allows a grace period of 30 calendar days within any 365 day period. Beyond that, employers must obtain active coverage. Employers must file an exemption form with the state regardless of the length of time spent on the job. Visit dex.htm for more details. For more information, visit the Interstate Jurisdiction link under the Employer Services tab at Or talk with CareWorks Consultants toll-free at Important Dates February 28, 2010 Payroll reports and premium for 7/1 12/31 payroll period due to BWC. Group rating and DFWP application deadlines for participation starting January 1st. March 31, 2010 Drug Free Work Place Progress Report and renewal deadline for employers with a July 1st effective date. One Claim Program application deadline. March 30 - April 1, 2010 Ohio Bureau of Workers Compensation Safety Congress in Columbus. April 2010 Safety seminars sponsored by CareWorks Consultants will be held at various Ohio locations. See cover story for more information and registration instructions.

5 SAFETY TRAINING WEBINARS WILL SATISFY REQUIREMENTS FOR CLAIMS Employers participating in a group rating plan who had a claim within the last two years need to complete two hours of mandatory safety training during the 2009 policy year (ends June 30, 2010). This new requirement adopted by the Ohio Bureau of Workers Compensation (BWC) applies to any claim regardless of size or severity with a date of injury between January 1, 2007, and December 31, To help members fulfill this requirement from the convenience of their own office, CareWorks Consultants and Risk Control360 will offer web-based safety training opportunities during the first several months of This webinar is a two-hour program, which will be offered from 9:00 a.m. 11:00 a.m on the following dates: March 9, 16 & 23 May 4, 11 & 18 June 8, 15 & 22 Training Topics Keys to Effective Safety Program Management This presentation focuses on BWC s 10-Step Business Plan for Safety, which is a primary component of many BWC programs. Group-rating participants are strongly encouraged to implement these components to prevent injuries and control their workers compensation costs. OSHA Update Learn about the top OSHA citations issued over the last year for general industry and construction so your can ensure compliance. Look at trends in workplace injury rates and the new focus of the agency under the Obama administration. Accident Investigation Developing a comprehensive accident plan and having the proper tools and documents Employers who have incurred claims must attend a safety training course to retain discount levels. readily available will help you capture essential information and protect your business. Registration To register for one of CareWorks Consultants webinars, send an to twohourtraining@ccitpa.com. Be sure to include your company name, BWC policy number, phone number and the date of the webinar you want to attend. After receiving your request to participate, you will receive instructions by to register in our webinar system. You must complete the electronic registration process to participate in the webinar. There is a $15 fee to participate in this webinar. Following completion of the webinar, you will be sent an invoice for the $15 fee. Upon payment of the invoice, a certificate of completion will be ed to you, indicating that you have completed the required two-hour safety training. BWC Safety Training Additionally, BWC is offering classes that meet the two-hour training requirement including: Ohio Safety Congress & Expo safety educational sessions, March 30 - April 1, Division of Safety & Hygiene Training Center - half and full day courses. BWC On Demand courses. BWC on-line safety courses. For more information on BWC safety training options, contact the Division of Safety & Hygiene at or visit ograms/safety/sandheducation.asp. If you attend a BWC course, you are required to submit proof of attendance to Care- Works Consultants. Please the information to twohourtraining@ccitpa.com or fax it to (614) About This Newsletter This newsletter is published by Care- Works Consultants, Inc. While the information in this publication has been compiled from sources and documents believed to be reliable, its accuracy is not guaranteed, nor is any responsibility assumed or implied for any damage or loss resulting from inaccuracies or omissions. The publisher is not engaged in rendering legal advice. You should discuss any legal questions with your attorney.

6 2010 BWC SAFETY CONGRESS & EXPO TO BE HELD MARCH 30-APRIL 1 The Ohio Bureau of Workers Compensation s (BWC s) Safety Congress & Expo is a great way to fulfill continuing education credits and learn new information important to your business. The 2010 Ohio Safety Congress & Expo will be held in downtown Columbus at the Columbus Convention Center from March 30 to April 1. This three-day event typically attracts more than 5,000 participants, including safety managers, facility managers, human resource managers and small business owners. Part of the program will include a breakout session designed specifically for small businesses. In addition to top-notch keynote speakers, the Ohio Safety Congress & Expo offers more than 100 educational sessions on such topics as safety program development, emergency planning, cost-cutting safety strategies, construction safety, injury management and ergonomic lifting guidelines. BWC will post session handouts on their website at for download prior to the event. We encourage you to print handouts for the sessions of your choice, and take them with you to each presentation as handouts will not be distributed at Safety Congress. However, they will remain posted on BWC s website for at least 60 days after the event. Employers who attend the Safety Congress and participate in the 60-minute educational safety sessions are eligible for continuing education credits, as well as credits necessary to retain safety-related premium discounts. To learn more about this event or to register your attendance in advance, please visit CareWorks Consultants Inc Glendon Court Dublin, Ohio FAX (614)