Ohio businesses get rate cut for workers’ compensation insurance

(The Center Square) – After returning billions to Ohio businesses to help offset COVID-19 pandemic struggles over the past year, the Ohio Bureau of Workers Compensation announced late last week another benefit will come soon.

For the fourth consecutive year, the BWC cut workers’ compensation premiums, approving a 7.1% net decrease in private employer rates that it said will save $71.5 million this year for about 220,000 employers across the state.

The reduction goes into effect July 1, according to a news release from the BWC.

“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,” BWC Interim Administrator and CEO John Logue said. “We’re especially pleased to pass these lower costs along to our business community amid the ongoing challenges created by the COVID-19 pandemic.”

It’s the fourth consecutive rate reduction for private employers since 2018 and the 12th overall since 2018.

The BWC board approved a 10% rate cute earlier for public employers, such as school districts and local governments that went into effect at the beginning of this year.

The BWC also approved a request from Gov. Mike DeWine in November to return $5 billion in dividends to Ohio businesses.

That money did not come from the state budget but served almost as a return of premium for public and private Ohio employers who pay directly to the state for workers’ compensation insurance. The BWC invests those premiums to pay workers’ compensation claims or, in that case, return money to businesses.

The success of the premium management led to a workers’ compensation rate cut of 20% last year and 13% this year, along with the dividend returns this year, according to Stephanie McCloud, who was the BWC administrator last year. Since last July, she said, BWC has earned another $1 billion in investment income.

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