Recently an injunction was filed by several Ohio state fund employers against the BWC to revise its system for establishing workers’ compensation premiums and if it stands will end the Group Rating program. This lawsuit charges that the Bureau’s system is unreasonable and unfair. They claim that employers that have even just a claim or two are unjustly penalized while other employers enjoy rather large discounts.
Currently premiums are set at the beginning of the year and are based on an employer’s claims history. A more prospective system for determining premiums is being suggested. This could ultimately reduce your group rating discount or eliminate group rating all together.
Those promoting this “more equitable system of rating employers and establishing their premiums” feel that base premiums will dramatically decrease and it will make Ohio a more desirable place to bring new business. Those who oppose the ruling do not feel that premiums will decrease and when the group discounts are thrown out, the impact to employers and Ohio’s economy would be devastating.
The outcomes that develop from this injunction could potentially change the face of Ohio workers’ compensation as we have known it thus far.
If you are an Ohio employer and are interested in understanding your workers’ compensation premium calculations and the discounts currently available to you through Group Rating you can visit our website at www.ohpinc.com to request a quote or contact us with any questions.
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