BWC Would Return $112.8M to Schools, Governments
COLUMBUS, Ohio -- Gov. John Kasich’s proposal to rebate $1 billion rebate would return $112.8 million to nearly 3,800 municipal and county governments and schools. Kasich’s proposal would also tripling safety grants to $15 million and reduce rates 4% for public employees and 2% for private employers.
The proposed rebates and reforms are made possible by larger-than-expected fund balances generated by strong investment management, noted Steve Buehrer, BWC CEO/administrator.
Of the $112.8 million to be returned, schools would receive the largest portion of the rebate -- approximately $42.5 million -- followed by cities at $37 million, counties $16.5 million and townships $7.6 million.
Some of Ohio’s governments and schools are self-insured and do not pay into the BWC system and are therefore not affected by the proposal. The amount each public employer would receive is approximately 56% of its annual workers’ compensation insurance premium.
If approved by the OBWC Board of Directors May 30, checks could be mailed as early as June. In the Mahoning Valley, Columbiana County, with 55 policies, could receive $825,570. Mahoning County, with 61 policies, would receive $2,813,160 and Trumbull County, with 69 policies, $1,951,350.
The proposal would be funded from BWC’s net assets, which have grown to $8.3 billion and far exceed the target funding ratio of assets to liabilities the BWC board established in 2008.
The entire $1.9 billion proposal includes:
- Issuing $1 billion in rebates to Ohio’s 210,000 public and private employers that pay into the State Insurance Fund as early as this summer.
- Tripling Ohio’s Safety and Wellness Grant programs to $15 million for the July 1 policy year.
- Granting BWC authority to bill employers prospectively – that is, in advance of the coverage period, which would result in a rate decrease of 4% for public employers and 2% for private employers. Currently businesses are billed for the previous six months of coverage, and moving to prospective billing would improve collection rates and allow for more flexible payment options, Buehrer said. If approved by the Legislature, the OBWC would credit employers an estimated $900 million so they could avoid “double paying” as the system moves from paying in arrears to paying in advance.
Published by The Business Journal, Youngstown, Ohio.
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