Ohio Workers’ Comp Agency Proposes 6.3% Rate Cut

The Ohio Bureau of Workers’ Compensation (BWC) staff has proposed a 6.3 percent reduction to base rates for private employers beginning July 1.

If approved by the BWC board, it would mark the eighth consecutive year in which private sector rates have either fallen or remained flat. Rates for public employers were reduced beginning Jan. 1, and are now at their lowest level in at least 30 years, the BWC said.

A 6.3 percent rate reduction would result in an overall decrease in collected premiums of $91 million compared to premiums under the current rates. In aggregate, the premiums collected over the past four years would be $409 million less than would have been collected without recent reductions.

Private employers benefited from a 4 percent rate decrease in 2011, flat rates in 2012 and a reduction of 2.1 percent last year.

BWC and its actuarial consultant, Oliver Wyman, attributed the proposed reduction to better than previously expected claims frequency and claims severity.

The actual premium paid by individual private employers depends on a number of factors, including the expected future costs in their industry, their recent claims history, and their participation in various discount and savings programs.