While prices continue to go up for many employers nationwide, some private Ohio employers got a bit of good news recently.
The Ohio Bureau of Workers Compensation (BWC) came forward with a 2.1% base-rate reduction for private employers at the BWC Board of Directors’ Actuarial Committee recently.
The recommendation would reduce employer premiums by $29 million for the July 1, 2014 policy year. If approved by BWC’s Board of Directors, it would be the third year in a row that workers comp insurance rates have remained steady or dropped.
“Conservative management and strong investments, coupled with favorable claim frequency, claim severity and payroll trends are allowing us to achieve our goal of setting the lowest possible rates while still maintaining the solvency of the fund,” said BWC Administrator/CEO Steve Buehrer. “I’m pleased that over the past three years we’ve been able to provide both quality care and service to Ohio’s injured workers and stable, reasonable rates for Ohio’s employers.”
Ohio’s workers comp rate decreases over the last three years come at a time when the National Council on Compensation Insurance reports that nationally, states with rate increases are outnumbering states with decreases.
Aggregate Savings of Some $29 Million
The proposal represents an aggregate savings of $29 million over 2013 premium collections, and would bring the three year savings for Ohio businesses to an estimated $224 million. The three year savings is based on comparisons to 2011 rates and assumes a flat payroll, which is the basis for establishing premium.
Employers were presented with a 4% rate decrease in 2012 and flat rates in 2013. The actual premium paid by individual private employers depends on a number of factors, including their industry, their recent claims history and expected future costs, and their participation in discount and savings programs.
Employers are encouraged to visit ohiobwc.com to learn about the myriad of programs designed to improve safety, reduce workplace incidents, and transition injured workers back on the job, all of which provide additional savings.
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 workers compensation costs by 20% to 50%. He is a writer, speaker, and website publisher. www.reduceyourworkerscomp.com. Contact: [email protected].
©2013 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law.
