Rate cut proposed by monopoly workers comp insurer
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The Ohio Bureau of Workers’ Compensation has proposed a 10.8% workers compensation advisory rate cut for private employers in the state.
The proposed rate would be effective July 1 if approved by the bureau’s board of directors, the bureau said Thursday in a statement. The board will vote on the proposal Feb. 27.
The bureau attributed the proposed reduction to lower expected workers comp claim frequency and a new system of prospective billing, which will allow it to collect premiums before extending coverage to employers.
The proposed rate cut is an overall statewide average, so exact premiums paid by private employers will depend on the “expected future costs in their industry segment, their recent claims history, and their participation in various premium credit and savings programs,” among other factors, according to the bureau’s statement.
If the rate reduction is accepted, private employers would see a $153 million decrease in projected annual premium, and rate levels would be 21.4% lower than they were on Jan. 1, 2011, according to the bureau.
The bureau is Ohio’s monopoly workers comp insurer, providing coverage to more than 254,000 Ohio employers, according to the bureau’s website.
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