BWC Approves Largest Rate Deduction in 60 Years
COLUMNBUS – The board of directors of the Ohio Bureau of Workers’ Compensation (BWC) today approved a 20% reduction in the average premium rate it collects from private employers, which is BWC’s largest in nearly 60 years.
“We’re pleased to continue the trend of falling rates with a reduction that will save Ohio private employers more than $200 million next year,” said BWC administrator and CEO Stephanie McCloud.
McCloud said safer workplaces resulting in fewer and less costly workplace injury claims and continued lower inflation of medical costs are among the factors that make the reduction possible. Claims have fallen 18% since 2010 to 85,136 in 2018.
The cut follows a 12% reduction last July for private employers and 12% rate reduction for public employers — counties, cities, schools and others — that went into effect Jan. 1.
Overall, the average rate levels for the 242,000 Ohio employers in the BWC system are at their lowest in at least 40 years.
The 20% rate cut represents an average statewide change. The actual total premium paid by individual private employers depends on a number of factors, including the expected future claims costs in their industry, their company’s recent claims history, participation in various BWC rebate programs, as well as assessments collected to fund the operations of the system. The board will consider these assessment rates during its next meeting in March.
Copyright 2021 The Business Journal, Youngstown, Ohio.