Thursday, November 29, 2001

Public employer rates continue rising trend

The Ohio Workers' Compensation Oversight Commission voted new rates for Ohio's public employers for the 2002-policy year today. The commission voted to increase on average public employer rates 6.4-percent for the coming year.

An increase in the number of claims and expected claims costs caused an increase in workers' compensation insurance premiums for public employer taxing districts necessitating the increase.

"No one likes to raise rates but as an insurer, we must raise premiums, based on expected future claims costs. However, as part of state government, we understand Ohio's public employers face tight budgets," said James Conrad, Bureau of Workers' Compensation, Administrator/CEO.

Since 1997, a continuing rise in the number and severity of injuries and poor claims management by public employers caused the increase to their premiums. Those injuries caused employees to miss more work and increased the amounts of benefits paid. Over the same period, injuries and costs to private employers have decreased.

Last month, in an effort to assist public employers the commission approved a 50-percent, one-time dividend for Ohio's public employers -- meaning cities, counties and school districts in Ohio will receive a break of approximately $144 million in 2003.

Also, employers attending a four-hour Public Employer Summit session will receive an additional 25-percent cash refund in 2003. If every public employer attends, Ohio communities will benefit from an additional $67 million in savings, these saved tax dollars could be spent on fire protection, police departments, textbooks, or other essential services.

BWC will host the Public Employer Summits around the state in January and February 2002 focusing on controlling workers' compensation costs' and will share proven methods from successful public employers.

"If the heads of local public employers attend these sessions and implement proven cost saving measures and solid safety programs, we believe future cost savings can more than equal this one-time dividend, " Conrad said. "Attending the summit will demonstrate commitment to informed policy-making decisions; saving taxpayers money and improving workplace safety."