In Case You Missed It; Rate Reductions for Private Businesses

COLUMBUS — On Friday, February 25 the Bureau of Workers’ Compensation approved a 10% rate reduction in workers’ compensation premiums. The result is expected to be nearly $106 million in savings for private employers. 

Ohio Governor Mike DeWine and Ohio Bureau of Workers’ Compensation Administrator Stephanie McCloud announced that Ohio’s private employers will pay less in worker’s compensation premiums in the next fiscal year due to a 10% rate reduction approved by the BWC Board of Directors. 

Private employers will be paying close to $106 million less in this year’s premiums over last year. The reduction also follows a 10% rate reduction for public employers — counties, cities, schools and others — that went into effect Jan. 1. Overall, the average rate levels for the 249,000 private and public Ohio employers in the BWC system are at their lowest in at least 40 years.

The 10% rate cut for private employers represents an average statewide premium change including administrative costs. The actual premium paid by individual private employers depends on several factors, including the expected future claims costs in their industry, their company’s recent claims history, and their participation in various BWC programs.

The reduction is possible because of declining injury claims and relatively low Medical inflation costs by Ohio’s private employers. 

“I’m thrilled to see this rate reduction for Ohio businesses,” said State Representative Scott Oelslager (R-North Canton). “Supporting our businesses is the best way to ensure new growth and development in the state, and most importantly, consistent opportunities for Ohioans.” 

This most recent decision by the BWC Board of Directors is set to take effect July 1, 2022.