Ohio’s private employers are set to receive another reduction in their workers’ compensation premiums. The Ohio Bureau of Workers’ Compensation (BWC) has approved a 6% rate reduction, effective July 1, 2025, following a 7% cut implemented in 2024. This latest reduction is expected to save private employers across the state approximately $60 million in the next fiscal year.
A Continued Trend Of Lower Costs For Employers
The newly approved reduction marks the 16th rate cut in the past 17 years, bringing premium levels to their lowest in over 60 years. Ohio Governor Mike DeWine attributed the continued decline in costs to businesses fostering a culture of workplace safety, which has helped reduce claims and overall risk.
BWC Administrator/CEO Stephanie McCloud emphasized that the agency’s focus remains on maintaining a strong and stable workers’ compensation system while keeping costs low for the 258,000 private and public employers participating in the program.
What This Means For Small Businesses
The rate reduction is particularly beneficial for small businesses, allowing them to reinvest savings into their workforce and operations. Chris Ferruso, Ohio state director of the National Federation of Independent Business (NFIB), noted that reducing costs for small employers helps them retain employees, enhance workplace safety programs, and navigate economic challenges.
However, it’s important to remember that the 6% rate cut is an average statewide change. Individual employers’ premiums may vary based on factors such as:
- Industry risk levels and expected future claims costs
- A company’s recent claims history and safety record
- Participation in BWC safety programs and incentive initiatives
How GMS Can Help Your Business Maximize Savings
At Group Management Services (GMS), we are dedicated to helping businesses fully leverage the benefits of the Ohio BWC rate reductions while enhancing workplace safety and ensuring compliance. Here’s how we can help:
- Risk analysts: We provide personalized guidance to help you understand the impact of the rate reduction on your business and identify strategies to maximize your savings.
- Workplace safety programs: Our experts help implement effective safety programs that can reduce claims and further lower premiums.
- Claims management: By closely monitoring and managing claims, we help businesses control costs associated with workers' compensation, minimizing the financial impact on your company.
- Compliance support: Navigating BWC regulations can be complex; we ensure your business stays compliant with all requirements and adapts to any changes in the system.
By partnering with GMS, employers can achieve significant cost savings, improve workplace safety, and maintain regulatory compliance. Contact us today to learn how we can help your business make the most of these savings and create a safer, more productive work environment.