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What is Group Rating? 

Gain the competitive edge. For 2009 eligible clients will receive up to the maximum allowed discount of 77% off their workers' compensation rates, money they can use to grow their business. Baylor Associates provides employers with complete workers’ compensation services.  We are only a phone call away and provide personal attention to your specific needs.  Our goal is to save you time and money. View an example of group savings.

Ohio is a monopolistic state when it comes to workers' compensation coverage. This means that an employer can only obtain workers' compensation coverage through the Ohio Bureau of Workers' Compensation.

Employers pay premiums for their job classifications calculated by using basic rates that are determined using a ratio of claim costs to payroll for the particular job classification. This data is a sum for all employers within that classification for a four year period known as the claims "experience".

Larger employers are given an incentive to control claim costs by offering discounts to their rates based upon the amount of claim costs they have compared to average costs for an employer with their amount of payroll. Above average claim costs lead to penalty rates, and below average claim costs give these employers discounted rates and the option of group rating participation.

The state allows associations to sponsor or "group" employers for purposes of combining claim costs and payroll to form one large entity. The lower the group claim costs compared to the group payroll the larger the discount for the group participants. Group participants pay lower rates than they could realize on their own.

As a third party administrator, Baylor Associates forms groups for various associations by examining the claim costs and payroll of employer prospects. Groups rosters for the next policy year (July 1 through June 30) must be submitted by April 22, 2009. Information is currently being examined for the upcoming policy year which begins July 1, 2009.

Keep in mind that the Ohio Bureau of Workers' Compensation has been making adjustments to the amount of discount that groups can offer their employer participants. These maximum discounts have changed from 95% in 2005, 85% in 2008 to the current maximum discount of 77% for 2009. Also, changes in the BWC's claim reserving system MIRA2 used for the first time to determine 2009 rates may result in a decrease in projected savings. The BWC has also implemented a "break even factor" or surcharge which lowers the group discount by 31% in order to lower the base rates for non-group employers and limit savings for group employers.

How much can you save?

We provide a free no-obligation analysis of your possible savings in group rating. If you are interested in obtaining a projection, a BWC Form AC-3 Temporary Authorization must be completed.  To obtain a quote please click here.