The Ohio Bureau of Workers' Compensation (BWC) has proposed a 20% reduction in the average premium rate charged to private employers.The proposed cuts are as a direct result of a decline in workplace injuries and lower projected medical costs. If approved by its Board of Directors, the proposed cuts would become the largest rate cut in almost 60 years.
The 20% cut would be an average and the actual costs will dependent on the projected injury rates for the industry; the company's recent history of claims and their participation in BWC's rebate programs.
The recommendation follows a 12% decrease in premiums last year and a pattern of flat premiums since 2006. The BWC's Board of Directors will consider the proposed rate decreases at their meeting on February 22nd. If the rate change is approved, the reduction would take effect July 1, 2019 and is estimated to save private employers $244mm in premiums in fiscal year 2019.
Watch Zinner's A to Zinner Blog for updates on the BWC's proposed rate decrease.