Key Takeaways
- Next steps: The BWC Board will vote on the six percent reduction on February 28th.
- Effective date: If approved, the rate change takes effect on July 1, 2025.
- Potential savings: Ohio private employers would pay $60 million less in total premiums over the next fiscal year.
Ohio’s private employers may soon see yet another reduction in their workers’ compensation premiums. On January 24, 2025, the Ohio BWC announced a proposal for a six percent rate cut, a move that could save employers across the state a collective $60 million starting in July of this year.
Continuing A Trend Of Rate Decreases
If approved at the BWC Board of Directors’ meeting on February 28th, this would be:
- The sixth rate reduction since Governor Mike DeWine took office in 2019.
- The 16th decrease in the past 17 years, going back to 2008.
According to the BWC, the average premium levels for both private and public employers (totaling about 257,000 across Ohio) now stand at their lowest in 60 years.
Why The Proposed Rate Cut?
BWC Administrator/CEO Stephanie McCloud emphasizes that the continued trend toward lower rates reflects the commitment of Ohio’s workforce to promoting safety on the job. In addition, program participation, fewer claims, and a strong focus on injury prevention have helped keep costs in check.
Impact On Employers
This six percent rate decrease is an average statewide premium reduction. Actual savings for individual employers will vary based on:
- Industry risk and expected future claims costs
- Recent claims history
- Participation in various BWC safety and discount programs
Nonetheless, Ohio businesses, particularly small and midsize businesses (SMBs), stand to benefit significantly if the BWC Board gives final approval.
Looking Ahead
With the BWC’s track record of approving proposed cuts, many anticipate a favorable outcome on February 28th. Ohio Chamber of Commerce President and CEO Steve Stivers has already expressed strong support, noting that this decision would help make Ohio “the best place in the nation for business.”
How GMS Can Help
If you’re looking to take full advantage of potential premium savings or want to ensure your workplace safety measures and BWC program participation are optimized, Group Management Services (GMS) can help. Our experts will work alongside your organization to:
- Review your current workers’ compensation premiums and safety program participation.
- Provide alternative self-insured workers’ compensation where GMS covers all medical and compensation costs if the claim has been verified.
- Offer risk management guidance to keep your team safe and your premium costs as low as possible.
For more information on how this rate reduction could affect your organization, or to explore additional ways to reduce overhead costs and streamline your HR, contact us today. We’re here to help you stay informed, compliant, and prepared for changes as they develop.