Home / Articles / Additional Worker’s Compensation Reductions Potentially on the Horizon

Additional Worker’s Compensation Reductions Potentially on the Horizon

February 4, 2015

Share:

Ohio Bureau of Worker’s Compensation (“BWC”) recently announced its intention to reduce the overall rates charged to private employers. If adopted, a 10.8% statewide reduction in premium rates would go into effect July 1, 2015.

BWC is attributing the proposed reduction to several factors including actual claim frequency that is lower than expected and the adoption of a prospective billing system. Currently BWC bills premiums in arrears. With a prospective billing system, BWC will begin to bill employers for coverage in advance. The act of collecting in advance is expected to allow BWC to increase investment income which in turn leads to reducing rates charged to employers.

Of note, the 10.8% reduction is a statewide average, and therefore, not every private employer will realize a 10.8% decrease. Actual premiums for private employers will continue to depend on various factors such as claim history, expected industry segment costs, and participation in various premium credit and savings programs. In all, BWC expects employers will save approximately $150 million in costs annually.

The BWC board of directors will vote on the proposal during its next meeting, which is scheduled for February 27, 2015.

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a Clark Schaefer Hackett professional. Clark Schaefer Hackett will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.

Guidance

Related Articles

Article

2 Min Read

Supply chain software can help digitize the dilemma

Article

2 Min Read

Oversight and controls are key to limiting fraud in nonprofits

Article

2 Min Read

Standard business mileage rate will increase for the second half of 2022

Article

2 Min Read

Proposed regulations for inherited IRAs bring unwelcome surprises

Article

2 Min Read

Get your piece of the depreciation pie now with a cost segregation study

Article

2 Min Read

Navigating the New Data Privacy Landscape

Get in Touch.

What service are you looking for? We'll match you with an experienced advisor, who will help you find an effective and sustainable solution.
  • Hidden
  • This field is for validation purposes and should be left unchanged.