Clarification of BWC TPA Transition Timeline

May 2, 2018


We wanted to make our membership aware of the process taking place regarding the change of our Third-Party Administrator (TPA) for our BWC Workers Compensation Group Rating Program. As you are aware, the Ohio Municipal League has selected CareWorksComp to serve as our new TPA instead of CompManagement.

When the previous OML Executive Director retired in 2015, a review was conducted of existing contracts with member service providers including our contract with CompManagement. Upon review, there were significant concerns about the existing contract terms and what we felt was a lack of transparency. There were also significant disagreements with who had the management rights of the cities and villages included in the existing OML group rating pool going forward. We felt that better language was needed for our relationship to continue that would protect the level of service and stability we look for in programs we support. However, CompManagement was not willing to agree to new terms.

During those months of negotiations, OML began vetting other potential TPAs in the event CompManagement would not agree to the contract terms we needed for our members. This was done to proactively ensure there would be no gap in coverage and that a seamless transition could occur if warranted. Through this vetting process, we found that CareWorksComp surpassed the level of quality and customer service we strive to provide for our members and was agreeable to the contract terms rejected by the previous service provider.

Though this process of negotiating new contract terms began in September of 2017, OML notified our members as soon as possible once this transition occurred on April 25 th. The timing of the transition was due to BWC guidelines and a later change would prevent any flexibility to contract with any new TPAs until 2020. If any new members wanted to opt in for enrollment for the year 2019, they would need to do so by May 25 th. (Current group rating program members will be auto-enrolled for 2019.) In order to ensure the transition was seamless, we had to act before this enrollment window closed.

It is unfortunate that we were unable, for legal and logistical reasons, to keep our members apprised of the ongoing contract negotiations these past few months. Due to confidentiality provisions, we were unable to publicize any of these ongoing negotiations. This transition was not done lightly or hastily and was conducted in the best interest of our members. This change took place under the guidance of multiple levels of legal counsel to ensure the contractual obligations of the Ohio Municipal League are met and that our members rights are being protected, now and into the future. It is also unfortunate that CompManagement is seeking to prevent a smooth transition in TPAs due to the inability to reach contract terms that ensured the best levels of service for our members.  

CareWorksComp, the largest TPA in Ohio, has significant experience in dealing with public entities and unions. They have an outstanding safety division and understand the importance of work place safety in cooperation with union contracts. Furthermore, CareWorksComp has agreed to forego any administrative fees for the filing and management of OML's 2019 programs. Our members will pay CareWorksComp $0 this year for services provided from April, 25 2018 to December 31, 2019. Additionally, CareWorksComp has guaranteed to freeze rates for those who remain in OML's group rating pool for the next two years.

For your reference, below is a list of the communications we have previously sent regarding this transition thus far:

If you have any questions or want more information than a representative of CareWorksComp can assist with, please contact Paul Feck, Manager of Client Services: 614-526-7138 (office)/614-906-0535 (cell) or CareWorksComp Customer Service: 614-764-7600. If you have direct questions about any BWC claims hearings that contact number is: 614-526-7211.

 
If you have questions directly for the League, please call OML Executive Director Kent Scarrett at the League offices at 614-221-4349 or by cellphone at 614-204-0287.

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