The Ohio Bureau of Workers' Compensation on Thursday recommended a 20% reduction in the average premium rate charged to private employers.
If approved by the BWC Board of Directors, it would be the bureau’s largest rate cut in nearly 60 years. BWC Administrator/CEO Stephanie McCloud told board members the recommendation was driven by fewer workplace injuries and falling estimates of future medical costs.
“This rate cut would give private businesses a considerable opportunity to further invest in themselves and their workforces,” Ohio Gov. Mike DeWine said in a statement. “The Ohio Bureau of Workers’ Compensation is practicing sound fiscal stewardship by recommending this large rate reduction, while still maintaining a stable compensation fund for injured workers.”
The 20% figure would be an average, and the actual premium paid by individual private employers would depend on several factors, "including the expected future claims costs in their industry, their company's recent claims history and their participation in various BWC rebate programs," the BWC said.
The recommendation follows a 12 percent reduction last year and a pattern of no increases since 2006. If approved at the BWC Board’s Feb. 22 meeting, the reduction would be effective July 1 and will save private employers $244 million over premiums for fiscal year 2019.