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Ohio Cuts Workers' Comp Premiums by 20%
COLUMBUS, Ohio -- The Ohio Bureau of Workers' Compensation today announced the state's private employers will receive a one-time 20% premium dividend on their upcoming workers' comp bills. The dividend, approved by the Ohio Workers' Compensation Oversight Commission, was recommended by the BWC, and is based on solid and continual growth in investment income, officials said.The 20% dividend will result in savings of more than $170 million for private employers for the second half of 2004, said James Conrad, BWC administrator and chief executive officer. Private employers, mostly small- and medium-sized businesses, receive two annual invoices in January and July. The possibility of a dividend for the January billing will be determined in November, Conrad added.BWC enjoyed a 15.7% return on its investments in 2003 and the returns are outpacing benchmarks thus far in 2004, generating a sizeable surplus to fund the dividend, according to Conrad. "While this decision will directly pump $170 million back into Ohio's economy," he said, "BWC is also able to keep jobs, tax money and discretionary spending in-state by using an investment policy that has goals of doing business with Ohio-qualified managers and brokers. This policy, which is supported by Governor Taft, is a big reason why the bureau has outpaced 86% of public funds over the past nine years."The oversight commission also concurred with BWC's recommendation to raise private employer premiums an average of 2%. The increase is below the national average. Conrad noted. "Though we're never pleased to increase premium rates," he said. "I am encouraged that the measures BWC has put into place to have taken root and effectively slowed health-care costs. I remain hopeful that continued progress will be made to reduce the burden health-care costs placed on Ohio's workers' compensation system."Since 1995, Ohio's workers' comp rates remain 31% lower on average for private employers, he noted.Ty Pine, state director of the National Federation of Independent Business, said the 20% dividend announced today and "minimal rate increase is certainly good news for Ohio's small employers. The series of dividends BWC has granted provides small-business owners greater opportunities to create new jobs and invest in their operations."Eric Burkland, president of the Ohio Manufacturers Association, also hailed today's announcement. "BWC has taken another step toward furthering its legacy as a national leader in workers' compensation," he said. "Beyond the workers' compensation arena, this 20% dividend also demonstrates the bureau's commitment toward improving Ohio's business climate and making this state an attractive market for companies looking to grow and expand."Visit the Ohio Bureau of Workers' Compensation at www.ohiobwc.com"