Ohio BWC: Service, Simplicity & Savings
for Ohio Employers
2011
Rate Reduction Fact Sheet
What is happening?
The Ohio Bureau of Workers Compensation is recommending a 4 percent
reduction in average workers’ compensation base rates for all Ohio
employers. This will result in an estimated savings of $65 million for
Ohio employers.
How does this impact
individual employers?
The rate change reflects an average reduction. Each employer’s actual
rates incorporate overall claims cost trends within their specific
industry, as well as their own individual performance. Also, unlike
prior years, the average-rate reduction would apply to all employers
regardless of whether they participated in incentive programs such as
group rating.
Will all industries
receive the same reduction?
The 4 percent reduction is an average across all industries. In
addition to the drop in the base rate, the average rate for some key
industries will drop even more. For example, manufacturing’s average
rate will drop 7 percent, while commercial will drop 5 percent.
When will this happen?
If adopted in May by the BWC Board of Directors, the changes would
become effective for the July 1, 2011, policy year and Ohio employers
would pay premiums based on the reduced rates beginning in February
2012.
How are rates determined?
BWC sets rates annually in advance of the policy year. In consultation
with Deloitte Consulting LLP, it projects the number of claims and
associated costs it anticipates employers will file and sets rates
accordingly. The rate change reflects an average reduction. Each
employer’s actual rates incorporate overall claims cost trends within
their specific industry as well as their own individual performance.
Factors in the decision to lower rates included a trend of decreasing
claims frequency, as well as positive investment returns.
Read the Kasich Announcement
Read the Twinsburg Bulletin Story
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