The Ohio Bureau of Workers’ Compensation (BWC) in late May announced an extension of the $65 million in rate cuts enacted last year for Ohio’s private sector employers to the 2013 policy year that begins July 1.
BWC’s board of directors approved the proposal to maintain the statewide average rate at the current level, therefore maintaining last year’s 4 percent average rate reduction over the 2011 rates for private employers.
The rates for the 2013 policy year will be effective July 1. Each employer’s actual premiums incorporate overall claims cost experience within their specific industry and job classifications, as well as their own individual performance.
The board also reviewed a recommendation to reduce assessments for the Administrative Cost Fund, which funds the operating expenditures of BWC. Cost savings initiatives in recent years are allowing for the recommended 3 percent decrease in the assessment for private employers. The amount each employer pays into the Administrative Cost Fund is calculated as a percentage of their premium.
“Careful cost controls are allowing BWC to apply $35 million to future operating expenses and reduce the amount of employer premiums going toward those expenses,” said BWC Administrator/CEO Steve Buehrer.
Source: Ohio BWC
Topics Commercial Lines Workers' Compensation Business Insurance Ohio
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