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For Immediate Release: Sept. 27, 2007
BWC Board of Directors Takes Steps to Improve Ohio’s Group Rating Program
Separate board action keeps premium rates for public employers stable
Columbus, Ohio – The new, 11-member Bureau of Workers’ Compensation (BWC) Board of Directors took action today on
two measures aimed at making Ohio’s workers’ compensation system more competitive with other states and providing
parity in the premiums paid by private and public employers.
First, the BWC Board of Directors in attendance unanimously approved a recommendation from Administrator Marsha Ryan
to fully review the Ohio Group Rating Program, with an initial reduction of the group discount to be no less than 80
percent for the 2008 policy year. The current maximum discounts for the program is 90 percent.
Today’s action allows the Board’s Actuarial Committee to comprehensively review the program and determine the
appropriate discount rate. Once formally reviewed and approved, this change could reduce Ohio’s base rates by
approximately 4 percent overall.
“Ohio’s workers’ compensation base rates are currently the 12th highest in the country, hindering our state from
economic development opportunities,” said BWC Administrator Marsha Ryan. “This action by the BWC Board of Directors
demonstrates our commitment to make Ohio’s base rates competitive with those of other states, while also providing a
level of fairness to employers who are not participating in groups.”
This reduction is a first step in making Ohio’s workers’ compensation premium rates more competitive with workers’
compensation insurers in other states, making Ohio more attractive to businesses considering operations here. BWC will
continue to work with the Board and stakeholders to fully review the Ohio group rating program and make further
improvements.
BWC’s group-rating plan allows employers that operate similar businesses to group together and potentially achieve
lower premium rates than they could individually. Groups are sponsored by organizations such as trade associations
and third-party administrators. The program provides deep discounts on workers’ compensation premiums, which has
caused a $200 million premium imbalance between group and non-group employers.
In a separate action, the Board approved an average zero-percent premium rate change for Public Employer Taxing
Districts (PEC). PECs represent approximately 3,800 Ohio cities, counties, townships, villages, schools and special
districts. This action means that overall premium for PEC entities will not increase for the upcoming year beginning
Jan. 1, 2008. Individual PEC entities will see premium decreases or increases based on their own claims, but the
total overall will not change from the current year.
“For the past five years, Ohio’s public employers have experienced on average increases in their annual workers’
compensation premiums totaling more than 20 percent,” said Chairman Bill Lhota. “We recognize that many of our public
employers have been challenged in this area. This action demonstrates the commitment of the Board of Directors to
ensure rate stability for all Ohio employers.”
Contact: Keary McCarthy
mccarthy.keary@bwc.state.oh.us
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BWC Board of Directors
Chairman William Lhota, SI Employers | Charles Bryan, Actuary | David Caldwell, Employee Organizations | Alison Falls, Investment & Securities
| Philip Fulton, Employees | Kenneth Haffey, CPA | James Harris, Employee Organizations | James Hummel, Large Employers | Jim Matesich, Small Employers |
Larry Price, Public | Robert Smith, Investment & Securities
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