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For Immediate Release: Oct. 26, 2007 BWC Board of Directors Continues Discussions on Finances, Rate Stability Actuarial Committee to Hear Public Input on Group Rating Reform at Nov. 14 Meeting Columbus, Ohio – The 11-member Bureau of Workers’ Compensation (BWC) Board of Directors today met for continued discussion on the financial structure and investment strategies of the BWC. The Board also continues to contemplate proposed changes to BWC’s group-rating program, which could lower the current premium discount for employers participating in groups from 90 percent to no less than 80 percent for the upcoming plan year, which begins July 1, 2008. The Board’s Actuarial Committee voted Thursday to hear testimony from stakeholders with an interest in the group-rating program at its Nov. 14, 2007 meeting, which will begin at 9 a.m. in the William Green Building, located at 30 W. Spring Street, Columbus. “The issue of group rating is one that the BWC Board of Director’s will seriously and thoughtfully consider,” said Board Chairman Bill Lhota. “There are many variables that will go into this difficult decision, and there are many in Ohio with varying opinions. The Board of Director’s is committed to establishing equitable workers’ comp rates that are fair to all Ohio employers, while also making rates competitive with those of our neighboring states.” On Thursday, the Board’s Actuarial Committee also heard an analysis on the Ohio Group-Rating Program from BWC’s Chief Actuarial Officer, John Pedrick. The discussion included an historical overview and a summary of nine independent analyses of the program, which have been conducted over the last two decades. Pedrick explained that the current inequity in the group-rating program is causing non-group employers to subsidize those participating in the program. “On average, an Ohio employer who is not in a group pays more than $1,200 to cover the shortfall in the premiums paid by other employers who are receiving deep discounts, including its industry competitors,” Pedrick said. “By law, it is the responsibility of the BWC to ensure that our programs treat all Ohio employers fairly,” said BWC Administrator Marsha Ryan. “By restoring equity in the group-rating program, we will level the playing field for all Ohio businesses. I’m confident that we are on the right track to ensuring Ohio firms are treated fairly and that Ohio’s workers’ compensation product will be an asset to future economic development.” In an effort to educate and inform Ohio employers and affiliated associations, BWC has established a Web site dedicated to the group-rating issue at ohiobwc.com. To view the site, click here
Contact: Maria Smith # # # BWC Board of Directors Chairman William Lhota, SI Employers | Charles Bryan, Actuary | David Caldwell, Employee Organizations | Alison Falls, Investment & Securities | Philip Fulton, Employees | Kenneth Haffey, CPA | James Harris, Employee Organizations | James Hummel, Large Employers | Jim Matesich, Small Employers | Larry Price, Public | Robert Smith, Investment & Securities
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