Approve $65 Million in Rate Cuts
The Ohio Bureau of Workers’ Compensation (BWC) recently extended the $65 million in rate cuts enacted last year for Ohio’s private sector employers to the 2013 policy year that began July 1.
According to the BWC,its board of directors approved the proposal to maintain the statewide average rate at the current level, therefore maintaining last year’s 4% average rate reduction over the 2011 rates for private employers.
Opportunity to Predict Costs, Create More Jobs
“Stable rates provide employers with more opportunities to predict costs and contribute to the kind of jobs-friendly climate they need to expand and create more jobs for Ohioans,” said BWC Administrator/CEO Steve Buehrer.
The rates for the 2013 policy year were effective as of July 1. Each employer’s actual premiums incorporate overall claims cost experience within their specific industry and job classifications, as well as their own individual performance.
Exploring Other Costs Savings with Administrative Fund
The board also reviewed a recommendation to reduce assessments for the Administrative Cost Fund, which funds the operating expenditures of BWC.
Cost savings initiatives in recent years are allowing for the recommended 3% decrease in the assessment for private employers. The amount each employer pays into the Administrative Cost Fund is calculated as a percentage of their premium.
“Careful cost controls are allowing BWC to apply $35 million to future operating expenses and reduce the amount of employer premiums going toward those expenses,” added Buehrer. “We continue to look for innovative opportunities to save, from renting unused space in the William Green building to reducing operating expenses through capital improvements and better managing our recycling program and trash collection.”
The board will vote on the Administrative Cost Fund proposal during its next meeting scheduled for Friday, June 15.
Author Michael B. Stack, CPA, Director of Operations, Amaxx Risk Solutions, Inc. is an expert in employer communication systems and part of the Amaxx team helping companies reduce their worker’s compensation costs by 20% to 50%. He is a writer, speaker, and website publisher. www.reduceyourworkerscomp.com. Contact: [email protected].
WORKERS COMP MANAGEMENT MANUAL: www.WCManual.com
Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.
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