Employers in Ohio are likely to receive another cut in their workers’ compensation premiums following the Bureau of Workers’ Compensation (BWC) Board of Director’s first read on the proposed fiscal year 2023 premiums. During the Actuarial Committee meeting held on Thursday, BWC actuaries announced the proposal that would lower employer premiums 10 percent.
This move is projected to save employers more than $100 million next year and is the 6th largest premium cut since 2000.
Employer premiums have fallen consistently over the last two decades due to modern manufacturing processes, shifts in the types of jobs performed in Ohio and employer investments into making workplaces safer. In fact, over the last 15 years the number of lost time claims has shrunk by nearly fifty percent.
The Ohio Chamber commends the efforts by the Bureau to make our workers’ compensation program – which is entirely funded by employers – a driver of a better business climate in our state. Since the pandemic, Ohio employers have received more than $8 billion in dividends from BWC including a $5 billion rebate in 2020 that gave employers almost four times their paid premium back. Employers have also seen premium reductions for four consecutive years.
Despite the continued rate cuts and employer dividends, the BWC’s state insurance fund remains in a strong financial position with a net position of approximately $9.1 billion.