Media Advisory: Oct. 21, 2010

Workers’ Compensation Rate Reform Results Highlighted in National Study

COLUMBUS – A nationally-recognized study on the cost of workers’ compensation shows Ohio rates have improved dramatically over the past three years. The Oregon Study is seen as a barometer of workers’ compensation costs among U.S. states. The new study clearly demonstrates Ohio’s cost improvement, falling from the third highest to 17th -- in an average range with most other states.

“There is no denying that BWC’s rate reform efforts are making a positive impact on what the majority of Ohio employer’s are paying for workers’ compensation insurance,” said BWC Administrator Marsha Ryan. “While the Oregon Study is mainly focused on the worker classifications of that state’s industry base, it is confirmation that we are moving in the right direction, and making significant progress in lowering the cost of workers’ compensation for Ohio businesses.”

The 2010 Oregon Study used data based on 2009 workers compensation rates, and lists Ohio’s rates as $2.24 per $100 of employer payroll. The previous, 2008 Oregon Study was based on 2007 rates, and showed Ohio at $3.00 per $100 of payroll.

Since data was gathered for the most recent study, Ohio’s average base rates have been further reduced. A recent study by BWC’s Actuarial Division shows Ohio’s current average base rates to be at $1.95 per $100 of employer payroll, putting Ohio even more in the mid-range of the nation for workers’ compensation costs.

BWC’s rate reform efforts have been ongoing for the past three years. Since 2007, the average base rate for non-group public employer taxing districts have been reduced 33.5 percent; and non-group private employers have seen a 35-percent rate drop – the lowest rates in 20 years.

For more information about BWC’s rate reform efforts, visit ohiobwc.com/reform.

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