New Cash Flow Planning Tools for Ohio Businesses

As a response to the Coronavirus epidemic, Ohio has taken action to help employers conserve cash flow through the very uncertain times they are currently experiencing.

Ohio Workers’ Compensation Premium Deferral

Ohio is one of a handful of states that has a “monopolistic” workers’ compensation system. In general, employers who are not self-insured are required to obtain coverage from the Ohio Bureau of Workers Compensation (BWC). This system allowed Ohio to announce that insurance premium installment payments due for March, April and May for the current policy year may be deferred until June 1, 2020. BWC also stated this deferred deadline could potentially be reconsidered for further extensions.
BWC will not lapse (cancel) coverage or assess penalties for these deferred payments. We have confirmed with BWC that this deferral is automatic. You do not need to take action.

Employer Health Insurance Premium Deferral

The Ohio Department of Insurance issued an order that gives employers the ability to defer premium payments for up to 60 days from the original premium due date. No interest can be charged on the deferred payments. This provision remains in effect until the expiration of the state of emergency in Ohio.

Other Health Insurance Matters

In addition to the premium payment deferral, the Ohio Department of Insurance order includes the following additional provisions to provide health insurance flexibility for both employers and employees:

• Employers can continue to cover employees even if hours fall below-stated minimum hours.
• Premiums cannot be decreased due to decreased enrollment.
• Employers with 20 or more employees can continue to offer COBRA coverage as long as at least one employee remains actively employed.

These provisions also remain in place through the duration of the state of emergency. Any questions regarding health coverage should be directed to your benefits broker or insurance company.