BWC Proposes 12% Drop in Rates for Governments
COLUMBUS, Ohio – The Ohio Bureau of Workers’ Compensation is recommending a reduction in next year’s rates for Ohio’s school districts, cities and other Ohio local government employers. BWC would collect $21 million less under the proposal the agency made Thursday to its board of directors today.
The 12% reduction would be effective Jan. 1, and would be the second largest decrease for the state’s public employer taxing districts since at least 1985.
“This proposal for yet another overall rate reduction for these 3,700 public employers could free up funds to invest in their communities,” said Chris Carlson, BWC chief actuarial officer. “In addition to significantly reducing costs next year, it also supports BWC’s goal of maintaining maintain stable and predictable rates in the future.”
Carlson added the seven decreases for local governments since the start of 2011 total 41.8% for a combined statewide financial impact of $435 million. BWC is also delivering approximately $157 million in rebate checks to these employers during the month of July and has returned $8 billion to all Ohio employers since 2011.
A number of factors make the 2019 reduction possible, according to the agency. These include declining claims and relatively low medical inflation costs that are combining for a favorable forecast for future average claim costs.
The decrease represents the change to the statewide average of the collectible rates for public employer taxing districts. The actual premium change for an individual public entity will differ based on several factors, including their employer type or classification, recent claims history and program participation.
The board will vote on the proposal during its next meeting, Aug. 24.
Copyright 2023 The Business Journal, Youngstown, Ohio.