Ohio Allows 5% Rate Cut on Workers’ Comp Insurance

Ohio state officials on Friday approved a 5 percent overall rate reduction in premiums for businesses participating in Ohio’s insurance fund for injured workers, the first reduction since 2001.

The decrease, which takes effect July 1, was possible because of lower medical costs and a reduction in the number of claims, said Marsha Ryan, administrator of the Ohio Bureau of Workers’ Compensation.

The bureau took in $1.78 billion in premiums in 2007, and that’s expected to drop to $1.69 billion this year because of the decrease, agency spokesman Keary McCarthy said.

The 5 percent overall decrease will affect Ohio businesses differently, depending on the risks involved in a particular industry. Some businesses will see a rate reduction higher than 5 percent, while other types of businesses may see an increase, McCarthy said.

Claims have been going down because the changing nature of the economy, more service employment and fewer manufacturing jobs _ has changed the nature of workplace injuries, he said.

Ohio is one of only four states with a government-run system. Other states operate workers’ comp systems through private insurance companies.