What is Ohio’s New Workers’ Comp Insurance Proposal?
A proposal by Ohio Bureau of Workers’ Compensation (BWC) Administrator/CEO Steve Buehrer could soon see a double-digit reduction in private employer workers’ compensation coverage rates. Should the proposal pass during the BWC’s upcoming February 27, 2015 meeting, employers could see their projected annual insurance premiums drop by $153 million. This proposal would result in 21.4 percent lower rates than those in effect on January 1, 2011.
Buehrer believes that strong safety programs for workers and supporting accident prevention and healthy workplaces creates more opportunity for employers to invest in their own operations. The reduced cost of workers’ compensation coverage, lower expected claim frequency for the upcoming year and the upcoming prospective billing system will give employers some financial wiggle room.
Prospective billing, the industry standard practice, allows the BWC to collect premiums before extending coverage and enables them to lower rates to mirror increased investment income. Additionally, to facilitate the transfer to the new billing practices, the BWC will issue a one-time credit of $1.2 billion to prevent employers and governments from being double-billed.
If you would like more information about Ohio workers’ compensation laws, add Larrimer & Larrimer’s workers’ compensation law firm on Facebook.
Larrimer & Larrimer, LLC—Columbus Workers’ Comp Attorneys