Ohio’s employers should see a reduction in their workers’ compensation rates for 2017.
On Thursday, March 17, the board of directors of the Ohio Bureau of Workers’ Compensation approved an 8.6 percent reduction in overall average rates that will cut premiums next year by $113 million. The amount each private employer will save under the latest cut depends on assortment of factors, including number of claims and the industry that the employer operates in.
“As a result of the board’s actions, Ohio private employers will be paying $463 million less annually than they were at the beginning of 2011, representing a combined 28.2 percent decrease,” said BWC Administrator/CEO Steve Buehrer in the release. “The reduction announced (Thursday) will add to the $4.3 billion in rate cuts, rebates and credits Ohio’s employers have realized over the past five years.”
Skoda Minotti’s Ken Haffey, CPA, CVA, CGMA, has served as chair of the Audit Committee since 2007 and is the only licensed CPA on the board. Haffey stated the current rates are comparable with those offered in 1990.
The rate reductions are due to conservative fiscal management, a modernized billing system, a strong return on investments and a drop in injury claims. The BWC has also tripled its safety grant program to $15 million annually, and is investing millions to better train firefighters and fund university research on a myriad of safety topics.
The Ohio Bureau of Workers’ Compensation Board of Directors is an independent body comprised of representatives from business, finance and labor. Its 11 members are appointed by the governor and include actuarial, audit and investment experts, among others. They typically meet the last week of the month, and each serves on at least one of the board committees.
If you want to know more about the future of worker’s compensation rates in Ohio, reach out to Ken Haffey via email or call 440-449-6800