Ohio BWC: 20 Percent Rate Cut, $1.5 Billion Going Back to Ohio Employers in September
The Ohio BWC is continuing their trend of lowering workers’ compensation costs for Ohio’s private employers. In July, a 20 percent cut for private employers took effect and this will be followed by another $1.5 billion of the agency’s revenues being given back to Ohio employers covered by the BWC system.
The latest rate cut, which will save Ohio’s private employers more than $200 million, is the largest rate cut in nearly 60 years.
The $1.5 billion dividend equals 88 percent of the premiums employers paid for the policy year that ended June 30, 2018 (calendar year 2017 for public employers). While the bulk would go to private companies, an estimated $114 million would go to counties, cities, townships and other local government entities. Nearly $50 million would go to public school districts.
BWC will begin sending dividend checks to employers in late September.
This dividend marks the fifth time since 2013 the agency has returned at least $1 billion to employers following strong investment returns, falling injury claims and other operational efficiencies.
Employers are free to spend the funds as they wish, but BWC Administrator/CEO Stephanie McCloud urges businesses to invest in workplace safety.
In total, BWC has saved employers nearly $10 billion in workers’ comp costs through dividends, credits, rate reductions and greater efficiencies since 2011.
Overall, the average rate levels for the 242,000 Ohio employers in the BWC system are at their lowest in at least 40 years.