COLUMBUS, Ohio -- Ohio is again being recognized nationally for the improvement in its workers' compensation rates. The Oregon Premium Rate Ranking Study, a biennial review of workers' compensation rates released last week, put Ohio 33rd lowest among the 50 states. As recently as 2008, Ohio ranked third-highest.

"We believed early on that one of the most productive steps we could take to support the success of Ohio employers was to keep their workers' comp rates low and stable," said Steve Buehrer, administrator/CEO of the Ohio Bureau of Workers' Compensation, in a prepared statement. "Ohio's continued ascension in this national study is another positive sign for Ohio's employers, and indication of our economic recovery and rise in competitiveness."

The Oregon Premium Rate study compares the base rates of each state in 50 widely used classification codes that are assigned by occupation to indicate degree of risk. Ohio ranked 28th-highest in 2012, 17th-highest in 2010, and third-highest in 2008. Ohio's base rate index in the 2014 study of $1.74 per $100 of payroll is below the national median of $1.85. Ohio's base rate index was $3.32 in 2008, when the national median was $2.26.

The latest study uses Ohio's private employer base rates effective July 1, 2013, however average rates are lower because of a 6.3% reduction effective July 1. While the study compares base rates, the average figure per $100 of payroll that BWC officials anticipate collecting from private employers across all classifications during the 2014-15 policy period is projected to be $1.61. The collectible rate represents the amount the Bureau receives after applying experience modifications and discounts for participation in various programs.

In total, reductions in average base rates for Ohio private employers over the last four years bring the combined premium collections over the last four years down by $409 million. While not in this study, Ohio local government employers have also seen overall rate reductions and are paying their lowest rates in 30 years, Buehrer said.

Published by The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our free daily email headlines and to our twice-monthly print edition.