04/11/2023

Handicap Reimbursement Program

Source: Sedgwick, April 4, 2023

The Ohio Bureau of Workers’ Compensation (BWC) offers the Handicap Reimbursement Program to potentially off-set claim costs and encourage employers to hire and retain employees with a handicapped condition. Ohio Revised Code 4123.343 recognizes 26 conditions / disabilities in which, under some circumstances, the employer may be eligible for reimbursement of partial claim costs. The handicap percentage awarded by BWC will reduce claim costs without reducing the benefits to the injured worker. The reduced claim costs can result in sizable premium reductions.

Eligibility Requirements

If an employee suffers a lost-time industrial injury/ occupational injury or death, the claim may be eligible for handicap reimbursement if it can be shown that the handicapped condition pre-existed the industrial injury or occupational disease and either caused the claim or contributed to increased costs or delay in recovery. Additionally, one of the following benefit types must have been paid in the claim:

• Temporary total compensation
• Permanent total disability
• Permanent partial-scheduled loss
• Survivor benefits
• Wages in lieu of temporary total disability

Application Filing Deadlines

Private Employers:

• If the date of injury is between January 1 and June 30, the application must be filed by June 30 of the year no more than six years from the year of the date of injury or occupational disease.
• If the date of injury is between July 1 and December 31, the application must be filed by June 30 of the year no more than seven years from the year of the date of the injury or occupational disease.

Public Employers: 

• A public employer must file the application by December 31 of the year no more than six years from the year of the date of the injury or occupational disease.

The Sedgwick cost containment team conducts reviews on claims which meet the eligibility requirements for handicap reimbursement, files the application and attends the handicap hearing on behalf of our Ohio TPA clients.

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• Group Rating – Sedgwick 's group rating program is the only plan endorsed by Graphic Media Alliance.  This program offers premium savings up to the maximum BWC amount of 53%. In 2020 the program has an average of nearly $2,000 in upfront premium savings.
• Group Retrospective Rating - This program offers premium savings projected as high as 57% and can be a great alternative for businesses unable to qualify for traditional group experience rating.  In 2020, the program's estimated projected savings are nearly $12,000 for members participating in this program.
• Deductible Program - This program offers discounts (up to 40%) on premium rates in exchange for accepting a specified deductible amount.
• 100% EM Cap - Businesses becoming penalty rated for the upcoming policy year can have increases to their Experience Modifier (EM) limited, or capped, at 100%, thereby limiting rate and premium increases.
• Self Insurance - Businesses pay compensation and medical costs directly for work-related injuries avoiding escalating reserves and premiums charged by the Ohio Bureau of Workers' Compensation.  York serves more Ohio self-insured employers than any other third party administrator. 

As a result of their best-in-class service, Sedgwick has consistently maintained a 97% retention rate - one of the highest in the industry.  Put their team to work for you. For a no-cost, no-obligation program analysis, contact your BDD or Sedgwick's Cordell Walton, toll-free, at 614-827-0398 or cordell.walton@sedgwick.com.