At a manufacturing facility near Columbus, Governor Mike DeWine and BWC (Bureau of Workers’ Compensation) Administrator Stephanie McCloud announced their proposal to give $1.5 billion back to Ohio’s employers. Ohio’s private employers whose premiums account for a vast majority of the BWC’s state insurance fund will receive more than $1.3 billion dollars back.
The proposed rebate will be the sixth time since 2013 that employers who utilize the state insurance fund have seen a rebate, and it is the fifth rebate of at least $1 billion during that period.
These rebates are possible due to the investment performance and strong net position of the state insurance fund which is managed by the BWC’s Board of Directors. The state insurance fund, which pays compensation for valid Workers’ compensation claims, ended the month of April with a net position of $11.5 billion dollars.
In addition to rebates, Ohio’s employers have seen their Workers’ compensation premiums continue to shrink. In fact, a 20 percent rate reduction is set to go into place on July 1 of this year.
Ohio’s strong Workers’ compensation system is thanks in large part to the efforts of Ohio employers in making safer workplaces. The BWC data shows the number of claims, paid compensation and medical benefit payments continue to fall, which means more employees are returning home safe after work.
The governor’s and administrator’s proposal must first be approved by the BWC Board of Directors before it is finalized. McCloud noted she will bring up the proposal at the June board meeting and that she expects approval in time to send employers a check in September.
The Ohio Chamber will continue to monitor the rebate proposal over the upcoming months while the BWC Board of Directors considers the proposal.