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Media Advisory: August 27, 2010 BWC Board of Directors Stabilizes Group Discount for 2011 Reform Achievements of Last Three Years Eliminate Need for Change Next Year COLUMBUS – Marking the third anniversary of its first meeting, the BWC Board of Directors voted to maintain the current maximum discount and break even factors (BEF) for group-rated employers for the policy year beginning July 1, 2011. In October 2009, the Board established the current maximum discount and BEFs for the July 1, 2010,
policy year as part of its ongoing rate reform initiative. Now in its third year, rate reform is proving
successful in bringing more equity and stability to the rates Ohio employers pay for workers’ compensation
insurance coverage. Today’s vote holds the maximum discount for employers in the group rating program
at 51 percent and keeps the same BEF formula used to adjust discount levels based on the overall risk
of a group. “The intent of rate reform has been to ensure fairness, equity and stability in our rates and ultimately
the premium costs for all Ohio employers,” said BWC Administrator Marsha Ryan. “Today, Ohio’s rates are
the lowest they’ve been in 20 years and the cost for employers more appropriately represents the risk
they bring to the workers’ compensation system.” Since 2007, Ohio’s average base rate has dropped 35% - the lowest in two decades. Ohio’s average base
rate stands at $1.95 per $100 of payroll. While Ohio rates ranked among the highest in 2007, they
are now in the mid-range for the nation at 20th, according to a comparison study by the BWC Actuarial
Division. The improved national ranking and lower rates are products of BWC’s efforts to improve
premium equity for all employers, while maintaining an actuarially sound State Insurance Fund. In other business, the Board revised a rule related to authorization and payment for devices that control
pain and speed recovery. Injured workers were previously required to submit signed written requests for
transcutaneous electrical nerve stimulator (TENS) and neuromuscular electrical stimulator (NMES) supplies
on a monthly basis. Today’s rule revision takes this unintended burden off of the injured workers by
requiring their employers’ Managed Care Organization to determine the need for supplies. The next meeting of the BWC Board of Directors will be Friday, September 24, 2010 at 8 a.m. in Room 3, Level 2 of the William Green Building, located at 30 W. Spring St., Columbus. # # # Ohio Bureau of Workers’ Compensation Board of Directors
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