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Media Advisory: April 24, 2008
BWC Board of Directors Approves 10-Percent Rate Reduction
for Universities and State Agencies
The BWC Board of Directors held on April 24, a public forum on medical service improvements.
View the testimony from the forum here. (6.9MB PDF) |
COLUMBUS – The Ohio Bureau of Workers’ Compensation (BWC) Board of Directors today unanimously approved a 10-percent overall premium rate decrease
for Ohio state agencies, universities and university hospitals, effective July 1, 2008. The reduction is the first premium rate decrease for these
public employers since 1999.
“Today’s action, coupled with last month’s reduction in private employer rates, is a deliberate effort to move premium rates in a direction that is
fair for all Ohio employers,” said BWC Administrator Marsha Ryan. “By reducing premium rates, we are creating a workers’ compensation system that
offers stable costs and accurate rates, making Ohio more competitive for future economic investment and job creation.”
A BWC actuarial analysis recommended the change to the Public Employer State Agencies rate. The decrease will result in the collection of approximately
$66.4 million in premiums. State agencies, which pay premiums bi-weekly, will begin paying the new rate beginning July 1, 2008, state universities
and university hospitals pay quarterly premiums and will begin paying at the lower rate in October 2008. The average rate decrease will vary among
public employers state agencies, with an increase for some agencies and a decrease for others, based on their claim activity.
The Board also voted to reduce the Public Employer Taxing District Credibility Table to a maximum of 85 percent for the rating year beginning
January 1, 2009. This 5-percent reduction brings the public employer taxing district credibility table to the same level the Board of Directors
set for private employers for their rating year beginning July 1, 2008. The credibility table is used to calculate adjustments that are applied
to base rates in order to reflect an employer’s actual claim experience. Public Employer Taxing Districts include 3,800 cities, counties, villages,
townships, schools and miscellaneous special districts throughout Ohio.
For more information about BWC programs and services, visit ohiobwc.com.
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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
Ohio Bureau of Workers’ Compensation
30 W. Spring St. | Columbus, Ohio 43215-2256
1-800-OHIOBWC | ohiobwc.com
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