Ohio BWC's Official Statement Regarding San Allen Decision
Columbus, OH (WorkersCompensation.com) - The Ohio Bureau of Workers' Compensation (BWC) today released the following statement on the San Allen lawsuit:
We are disappointed in the Judge's order today in the San Allen case and we do plan an appeal. We maintain our actions were lawful and restitution is not warranted in this case.
While the plaintiffs have argued that BWC was unjustly enriched by the premiums it charged to members of the class, consider:
- The actual claims costs and expenses of the companies in the class exceeded their premiums paid to BWC at a disproportionately higher rate than those companies not in the class. These employers' claims costs were $861 million more than the premiums they paid during the period, and BWC's net assets decreased by $2.5 billion over that period.
- On a dollar-for-dollar basis, for every dollar of premium collected during the class period, the class members as a whole had $1.26 in claims costs.
- Every dollar BWC collects from employers is spent on the prevention of workplace accidents and the care of those Ohioans injured on the job.
We believe the dollars we've collected have been spent appropriately and that all Ohio businesses have benefitted and continue to benefit from BWC programs and services.
Moreover, under the leadership of Governor John Kasich, BWC has worked to maintain low and stable rates. Ohio's private employers have saved an estimated $210 million in premiums over the past two years, during which time BWC reduced base rates and reduced its administrative budget.
Until such time as the matter is ultimately resolved by the courts, BWC will continue its emphasis on promoting money-saving programs like Destination: Excellence, which reward employers for creating programs that improve workplace safety and get injured workers healed and back to work sooner.