Private businesses in Ohio would save nearly $106 million over the next fiscal year if a proposal to cut the state’s workers’ compensation premiums by 10% is approved.
The reduction would follow a 10% rate reduction for public employers – counties, cities, schools and others – that went into effect Jan. 1. If approved at the Ohio Bureau of Workers’ Compensation (BWC) board meeting Feb. 25, it would be effective July 1.
“At the request of Gov. [Mike] DeWine, we are proposing a new rate reduction for private employers,” BWC Administrator and CEO Stephanie McCloud said. “This proposed rate reduction confirms the dedication and hard work Ohio’s private employers have towards workplace safety.”
A reduction would be the fourth straight since 2019 if approved. It also follows more than $8 billion in premium dividends employers have received since the beginning of the pandemic, according to the Ohio Chamber of Commerce.
“The proposed 10% rate cut is good news for Ohio employers of every size, regardless of industry,” Ohio Chamber President and CEO Steve Stivers said. “Thanks to their investments into safer workplaces Ohio businesses will benefit from lower operating costs through the reduction in workers’ compensation premiums. We applaud Gov. DeWine and Administrator McCloud for their continued efforts at BWC to use the employer funded system to create a better business climate in Ohio.”
The proposed 10% rate cut represents an average statewide premium change, including administrative costs. The actual premium paid by private employers depends on several things, including the expected future claims costs in their industry, a company’s recent claims history and participation in various BWC programs.
The state’s workers’ compensation fund is funded entirely by employer premiums.
This article was originally posted on Ohio proposes 10% cut to workers’ compensation premiums