Restoring Operational Excellence

Home
 Contact us
Promoting economic success for Ohio's
Rate reform
Accomplishments
Become involved

Comprehensive, Customer-focused Reform of Ohio's Workers' Compensation ProgramFlash versionPDF version State of the agencyRestoring Operational ExcellencePerformance measures

 

Ongoing BWC rate reform

BWC recognizes the economic challenges facing Ohio’s business community. With that in mind, the agency is continuing its comprehensive reform efforts to enhance the role that Ohio’s workers’ compensation system plays in the state's economic development. The keys to these efforts include:

  • Providing performance-based discount programs that allow businesses to reduce premiums through performance and a commitment to workplace safety. BWC is currently working with sponsoring associations and TPAs to create a menu of new programs.  The programs are intended to provide employers with potentially lower premium costs by considering objective performance measurements. Some or all of these programs are scheduled to be in place by July 1, 2009, including:
    • Deductibles: allowing employers to reduce their premium costs in exchange for bearing more individual risk for claims.
    • Group retro: enables similar employers to group together and attempt to control losses relative to what they are projected to incur. Better performing groups may achieve a dividend, while less effective groups may pay additional premiums.
    • Safety group dividend: permits groups of state-fund employers to receive a dividend based on exceeding performance projections.
  • Continue making improvements to group rating to preserve the essential benefits of the program and make it even more attractive to Ohio businesses. The proposed changes to group rating are aimed at improving and preserving the program, and making it even more attractive to businesses within the state. These changes could reduce Ohio’s base rates, making the state more competitive both regionally and nationally.

  • Transitioning employers towards paying more appropriate premiums, relative to the projected risks they bring to the system. The primary factor driving the amount of premiums should be the projected future risk that the business brings to the system.  At the same time, BWC also wants to prevent extreme economic hardships that might result from transitioning employers to more appropriate rates. To moderate premium increases, BWC worked with sponsoring associations and TPAs to develop two premium caps for employers. For non-group employers with significant experience changes, their EM increase would be capped at 100 percent.