At the Ohio Bureau of Workers’ Compensation (BWC) Board of Directors committee meetings today, staff recommended a 13% private employer premium rate reduction. This rate reduction will save employers across the state over $131 million next fiscal year, and is the third largest decrease since 1960.
The proposed rate reduction comes after a 20% premium reduction last year and a rebate of $1.5 billion this fall. It also represents the third rate cut in three years and the eleventh cut in twelve years.
While the actual premium costs will vary by individual employers, lower workers’ compensation costs are good for all employers. It shows that Ohio workplaces are safer, employees are experiencing fewer injuries, and investments into safety grants by BWC are working.
The Ohio Chamber of Commerce believes the staff recommendation of a 13% private employer premium rate cut is prudent because it will help assure employers rates remain stable even if investment returns take a step back, the number of filed claims goes up, or the cost of those claims spike.
The proposed 13% rate cut will go before the BWC Board of Directors again next month to be finalized, and if approved will take effect on July 1, 2020.