November, 2012

Workers Compensation News

Volume 12, No.5

Bugbee & Conkle Employment Law Seminar

405 Madison Ave., Ste. 1300 Toledo, Ohio 43604 (419) 244-6788 www.Bugbee-Conkle.com

Bugbee & Conkle, LLP hosted its annual Employment Law Seminar September 27, 2012. Over 75 participants enjoyed presentations on the following topics: Employer investigations, EEOC, OSHA enforcement, Social Media, Unemployment Compensation, Workers Compensation, and the ADAA. If you were unable to attend the seminar, but would like to receive printed materials, please contact Sally Pierce at 419-244-6788 Group Retrospective Program: An Alternative
For the past several years, state fund employers and the Bureau have struggled to find a viable solution to premium disparities among Ohio employers. On August 20, 2012, the class action lawsuit (San Allen, Inc. v. Bur. of Work. Comp.) challenging the constitutionality of the Bureaus group experience rating plan proceeded to trial before the Cuyahoga County Court of Common Pleas, where a decision remains pending. Despite the uncertainty of group rating plans in Ohio, the Bureau continues to pursue reform measures and develop programs aimed at reducing workers compensation premiums while improving workplace safety. One such program is Group Retrospective Rating (group retro), which the Bureau introduced in 2009. Recently, group retro programs are gaining in popularity because of the substantial premium refunds achieved by state fund employers, which refunds have been reported to be in the tens of thousands of dollars for many employers. Like traditional group programs, a sponsoring organization will group employers which meet certain qualifications. However, unlike traditional group programs, employers pay experience or base rated premiums directly to the Bureau as if they were not in a group. If the group achieves certain benchmark performance levels on (Continued on page 2)

Gregory B. Denny Tybo Alan Wilhelms Robert L. Solt, III Robert P. King Mark S. Barnes Janelle M. Matuszak Carl E. Habekost Carolyn A. Davis

www.Bugbee-Conkle.com

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assessment. Group retro programs may be an excellent alternative for employers which proactively manage their workers claims costs, then the group members compensation claims and are willing to receive a refund on their premiums in take some risk. Group sponsors often 12, 24, and 36 month intervals. reward employers willing to accept While group retro programs may result in significant savings to participat- greater risk with substantially greater refunds. ing employers, employers should be Please contact us if you have quesmindful that the program also has its risks. If the groups claims costs exceed tions about whether group retro may be the groups premiums paid, then the Bu- a fit for your organization. reau will charge the group a premium (Group retro continued)

House Bill 517 Proposes Significant Amendments To Workers Compensation Law On or about April 17, 2012 members of the State House of Representative introduced House Bill 517, which would amend significant sections of the workers compensation law. If the bill becomes law, the Bureau would be permitted to pay certain identified medical services and fill prescriptions during an earlier timeframe currently prescribed by law and charge such services to the Surplus Fund if the claim is ultimately denied. The proposed law also would permit the Bureau to dismiss claims which lack sufficient medical support, rather than to deny such claims, allowing claimants to refile their claims at a later date. Additionally, the proposed law gives the Bureau authority to request reimbursement from a claimants third party payer for medical costs paid in a claim that ultimately is disallowed. Furthermore, the proposed law contains amendments which would severely penalize claimants who refuse or unreasonably delay engaging in specific activities. Under the bill, if without good cause a claimant unreasonably fails to participate in rehabilitation services, fails to attend an employer or Bureau medical examination, fails to return requested medical authorizations, or fails to engage in medical services ordered by a treating physician, such claimant forfeits the right to compensation or benefits connected with such failure. The proposed law is a dramatic departure from the current law which provides either no sanction for a claimants failure to engage in specific activities or a suspension of the claim. It is unclear whether HB 517 will become law in its present form, with further amendments, or at all. Currently, the bill is in its infancy and merely has been assigned to committee. If you have any questions about the import or progress of HB 517, please contact us at 419-244-6788.
The information contained in this publication is not intended to serve as legal advice, but merely to alert readers to developments in the law. If you have any questions, either call at the address listed above left or email us through our website. The website can be accessed by clicking the link below.

405 Madison Ave., Ste. 1300 Toledo, Ohio 43604 (419) 244-6788 www.Bugbee-Conkle.com

Gregory B. Denny Tybo Alan Wilhelms Robert L. Solt, III Robert P. King Mark S. Barnes Janelle M. Matuszak Carl E. Habekost Carolyn A. Davis

www.Bugbee-Conkle.com