Ohio Workers' Compensation Guide:
Type of Employer
There are two different types of employer in the Ohio workers'
compensation system: state fund employers and self-insured employers.
Although the same compensation and benefits should be paid regardless
of who the employer is, the way the system works depends on what type
of employer is involved.State fund employers participate in the state insurance fund. They pay a premium, and do not pay workers' compensation benefits directly. Workers' compensation benefits for state fund employers are paid from the state insurance fund.
State fund claims have to be processed through the workers' compensation system in order to be paid. They are initially processed by the Bureau of Workers' Compensation. No payment can be made in state fund claims without a Bureau or Commission order.
Self-insured employers do not pay premiums. They pay all compensation and benefits directly to the injured worker.
Self-insured claims are processed differently than state fund claims. Because self-insurers pay compensation directly, they can pay compensation or benefits directly, without any order. Self-insurers make the initial decision on whether or not to pay a claim.
If the self-insurer chooses not to pay, then the issue can be contested through the hearings process. To get a hearing you must file a motion after the self-insurer refuses payment.
Another difference between state fund and self-insurers involves the application of the managed care medical system, for payment of benefits. This is explained in our Guide to Ohio Workers' Compensation Medical Benefits.