Columbus, OH (WorkersCompensation.com) - Private employers covered by the Ohio Bureau of Workers' Compensation (BWC) will pay $71.5 million less in premiums next policy year thanks to a rate reduction BWC's Board of Directors approved today.
The Board approved a net 7.1% decrease to private employer rates and assessments during its regular monthly meeting this morning, affecting approximately 220,000 employers across the state. The reduction goes into effect July 1, the start of the 2021 policy year.
“Thanks to fewer injury claims, fairly low medical inflation costs, and our strong fiscal management, we're in a good position to reduce these rates,” said BWC Interim Administrator/CEO John Logue. “We're especially pleased to pass these lower costs along to our business community amid the ongoing challenges created by the COVID-19 pandemic.”
The Board's action marks the fourth consecutive rate reduction for private employers since 2018 and the twelfth since 2008. It also follows a 10% reduction for Ohio's public employers (cities, counties, schools, etc.) that went into effect Jan. 1.
The 7.1% rate cut represents an average statewide change to premiums. The actual premium paid by individual private employers depends on several factors, including the expected future claims costs in their industry, their company's recent claims history, and their participation in various BWC programs.