BWC Plans to Cut Local Gov't Premiums by 10%

Monday, July 29, 2019 | 0

The Ohio Bureau of Workers' Compensation is proposing another premium cut, this one for local governments and schools.

Chris Carlson

The BWC's board of directors met this week and discussed a premium reduction that would average 10%, and would save Ohio school districts and municipal governments almost $18 million next year, according to a bulletin from the bureau.

"This proposal would free up funds for these employers to invest in their communities, create jobs and hire staff,” the BWC's chief actuary, Chris Carlson, told the board’s Actuarial Committee. “It also supports BWC’s goal of maintaining stable, predictable rates in the future.” 

The proposal follows a 20% rate reduction for private employers that went into effect July 1. It also follows a plan approved in June to send $1.5 billion in rebates to all state-insured employers in September, the result of strong investment returns, fewer claims and other savings.

The reduction is the state-run monopoly system's 11th decrease for public employers since 2009 and is the third largest since 1986, the BWC said. If approved by the board at the Aug. 23 meeting, it would take effect Jan. 1.

The decrease follows a 12% rate reduction for public employers that went into effect Jan. 1 this year.

Carlson said several factors made the reduction possible, including declining claims and relatively low medical inflation costs. The actual premium change for an individual public entity will differ based on several factors, including employer type or classification, recent claims history and participation in BWC rate-discount programs.