The Ohio Bureau of Workers’ Compensation (BWC) recently announced the release of a year-long comprehensive study of Ohio’s workers’ compensation system.
The study, conducted by actuarial insurance experts from Deloitte Consulting LLP, is available for viewing online at ohiobwc.com/deloitte.
The study was mandated by the 127th Ohio General Assembly to measure the performance of Ohio’s workers’ compensation system and to benchmark it against other state and private systems.
“For more than a year, we have worked closely with Deloitte as they have gathered information for this independent, top-to-bottom assessment of BWC,” said Administrator Marsha Ryan. “This process has afforded us a much-needed opportunity to closely examine the services we provide to injured workers, and the insurance products we offer to 270,000 Ohio employers. Deloitte’s recommendations are already providing us with outstanding guidance for resolving challenging issues. The study will serve as a guide for fundamental long term improvements to Ohio’s workers’ compensation system.”
The study was called for in House Bill 100 (127th G.A.), which recognized the need to improve the accountability and operational integrity of BWC following the scandals of 2005. Deloitte was awarded the study following a competitive bidding process.
Now that the study is complete, next steps include an intense review and analysis of Deloitte’s recommendations by an internal review team. They will review the volumes of study findings, analyze the recommendations and present a schedule prioritizing recommended changes. The team will also outline any required legislative and rule changes and identify a timeline for the implementation of changes.
BWC’s implementation plan will be presented to the BWC Board of Directors’ Actuarial Committee later this summer. As mandated in HB 100, Administrator Ryan is expected to report progress to the Ohio legislature in September.
A number of Deloitte’s recommendations have already been implemented by BWC. These include rate making improvements that include the recent adoption of a comprehensive rate reform plan. This plan will lower base rates by 12 percent and add a new deductible program and a group retrospective rating program for Ohio employers.
In its study, Deloitte identifies group rating as one of the highest priorities and it has been among the top priorities of BWC and its board of directors for nearly two years.
In addition to requiring the study, House Bill 100 also called for the creation of a professionalized board of directors, seated in August 2007; the assignment of a deputy inspector general to BWC; the replacement of the antiquated MIRA reserve system, which was replaced July 1, 2008; and the creation of the Workers’ Compensation Council.
Source: Ohio Bureau of Workers’ Compensation, www.ohiobwc.com