BWC Reduces Maximum Group Rating Discount

Kegler Brown Labor + Employee Relations Newsletter

On November 21, the Bureau of Workers' Compensation voted to reduce the maximum group-rating discount from 90% to 85%, effective July 1, 2008. The Bureau's press release claims the reduction "will create greater equity between the premiums paid by group-sponsored employers and non-group employers, and reduce Ohio's overall workers' compensation base rates." The Board's 5% discount reduction exceeded the 3% reduction recommended by its own Actuarial Committee. Consequently, group-rated employers on the whole will see their premiums rise while employers not fortunate enough to be in a group will probably see their premiums go down. Employers would be well-advised to bear the Bureau's action in mind when formulating their 2008 budgets. We anticipate that the Bureau will institute further group-rating discount reductions in 2009 and beyond.