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Group rating: Keeping you informed

BWC is currently undergoing a number of important reforms to improve its service to Ohio’s employers and injured workers. In conjunction with these reforms, BWC is addressing the inequity within Ohio’s group-rating program.

While a comprehensive review of the program is under way, immediate reductions in the maximum allowable credibility, and thus the group-rating discount, are necessary for the 2008 policy year.

At its November 2007 meeting, BWC’s Board of Directors unanimously voted to reduce the group-rating discount from 90 percent to 85 percent for the policy year beginning July 1, 2008. The reduction will create greater equity between the premiums paid by group-sponsored employers and non-group employers, and reduce Ohio’s overall workers’ compensation base rates. This change accompanies a thorough review of all components of the program such as rules, group continuity, and the potential adaptation of a new experience-rating system used by the National Council on Compensation Insurance.

The board approved this change using feedback from stakeholders, legislators and Ohio employers. It also considered the opinions of three independent actuarial firms that, in nine separate studies, cited instability and inequity in Ohio’s group-rating program over the past several years.

By establishing greater premium equity among all employers, BWC has a unique opportunity to reduce Ohio’s base rates overall. By reducing the group discount to 85 percent, BWC will be able to reduce Ohio’s base rates by approximately 2.5 percent. Doing so will create an important economic development opportunity for Ohio by making our workers’ compensation system more competitive both regionally and nationally.

Because changes to Ohio’s group-rating program impact a wide variety of employers and stakeholders, we want to provide information in a timely and convenient manner. The links that follow include information from stakeholder meetings, actuarial analyses, external communications and other helpful resources. These pages will be updated with new materials in the coming weeks and months.

Please send questions or feedback to our Group-rating information mailbox.