The Ohio Bureau of Workers’ Compensation (BWC) recently announced that private employers in Ohio will see an 8.6% reduction in workers’ compensation rates starting July 1, 2016. The BWC approved the price cut last month, which it estimates will save employers approximately $133 million next year. This estimate is on top of the $4.3 billion dollars in savings public and private employers have experienced from previous cuts over the past five years. According to the BWC, average rates for public employers have dropped 26.5% since the beginning of 2011 and are currently at a 30-year low.
This year’s rate reduction stems from lower than expected costs and a decline in workplace injuries. BWC Administrator Steve Buehrer also cites the Bureau’s “conservative fiscal policies, attention to safety, and strong investment management.”
The 8.6% reduction is a statewide average. A number of factors will determine the actual premium paid by individual private employers, including anticipated future costs in the employer’s industry, the employer’s recent claims history, the employer’s participation in various discount or rebate programs and other factors. For any questions or for guidance on workers’ compensation matters, contact David Riepenhoff at driepenhoff@fishelhass.com.