Ohio proposes 12% comp rate reduction for public employers

The Ohio Bureau of Workers’ Compensation is recommending a reduction in next year’s rates for Ohio’s school districts, cities and other local-government employers that would mean $21 million less for the bureau, according to an announcement made Thursday.

The 12% reduction, the result of declining claims and relatively low medical inflation costs, would be the second largest decrease for the state’s public employer taxing districts since 1985, according to a press statement.

If the bureau’s board approves the reduction at its meeting Aug. 24, the new rates will go in effect Jan. 1, 2019.

"This proposal for yet another overall rate reduction for these 3,700 public employers could free up funds to invest in their communities,” said Chris Carlson, the bureau’s chief actuarial officer in the statement. “In addition to significantly reducing costs next year, it also supports BWC’s goal of maintaining stable and predictable rates in the future.”

There have been seven decreases for local governments since 2011, totaling 41.8% for a combined statewide financial impact of $435 million in reductions, according to the statement.

The bureau announced in June it would also be delivering about $157 million in rebate checks to these employers during July. In total, it has returned $8 billion to all Ohio employers since 2011, according to the statement.