Ohio BWC Staff Proposes 6.3% Cut in Rates
COLUMBUS, Ohio -- The Ohio Bureau of Workers’ Compensation staff Tuesday proposed that the agency board of directors approve a 6.3% reduction in base rates beginning July 1.
If the directors accept the recommendation May 22, the 6.3% reduction would result in an overall decrease of $91 million in premiums collected compared present rates. May 22 is the date of their next regularly scheduled meeting.
Assuming the directors act favorably, this would be the eighth consecutive year during which private sector rates have either fallen or remained flat. Rates for public employers were reduced effective last Jan. 1, and are now at their lowest levels in at least 30 years, the BWC said.
“BWC has challenged itself to be part of the solution to Ohio’s economic recovery by keeping employers’ workers’ compensation rates affordable so they can prosper,” said BWC administrator and CEO Steve Buehrer, in a prepared statement. “While we’re pleased with this trend of lower and more stable rates for employers, we’re also tremendously pleased with our progress in fulfilling our mission to provide the highest quality care and return-to-work services to Ohioans who suffer workplace injuries."
Private employers benefited from a 4% rate decrease in 2011, flat rates in 2012 and a reduction of 2.1% last year, the bureau said.
BWC and its actuarial consultant, Oliver Wyman, attributed the proposed reduction to better than expected claims frequency and claims severity.
Published by The Business Journal, Youngstown, Ohio.
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