A 10% rate reduction for Ohio’s private employers
Ohio Governor Mike DeWine and Ohio Bureau of Workers’ Compensation Administrator Stephanie McCloud announced today that Ohio’s private employers will pay nearly $106 million less in workers’ compensation premiums in the next fiscal year due to a 10% rate reduction approved by the BWC Board of Directors today. This marks the fourth straight reduction since Governor DeWine took office in 2019.
This 10% rate reduction is possible because of declining injury claims and relatively low medical inflation costs by Ohio’s private employers.
“It’s great to announce yet another rate reduction today,” said Governor DeWine. “Our state’s private employers continue prioritizing workplace safety, and that is what allows us to reduce rates year after year.”
This rate reduction becomes effective July 1 and 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 on January 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.
“We are at a 40-year low for average rate levels for Ohio employers, bolstering Ohio’s already strong business climate,” said BWC Administrator/CEO Stephanie McCloud. “I am thrilled we get to continue to cut rates for both private and public employers.”
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 news that the Ohio Bureau of Workers’ Compensation (BWC) Board of Directors has approved a rate cut of 10% for Ohio private employers is certainly welcome news for Ohio’s small business owners. As the state fund comprised almost entirely of small businesses, this will provide some additional relief to many entrepreneurs who are still working their way out of the pandemic,” said Roger Geiger, Executive Director for NFIB in Ohio.
“We appreciate Ohio Governor Mike DeWine and Administrator Stephanie McCloud for recognizing the small business owners of this state are not out of the woods yet. In 2022, every penny still counts as they look to grow their sales which then allows them to grow their businesses. Because of the excellent stewardship of the BWC and Ohio employers working hard to reduce the frequency and severity of workplace injuries, it is certainly appropriate that BWC premiums charged by the state be reduced for Ohio private employers,” Geiger concluded.