Commitment to Safety Garners More Than $9 Million in Savings for Ohio Employers

Keeping the work force safe not benefits businesses with fewer days of lost time, it also can mean money back into the pocket of the business owners.

Throughout Ohio the Bureau of Workers' Compensation delivered more than $9 million in rebates to about 2,900 employers that earned the funds by participating in one of the 80 BWC-sponsored safety councils.

For 74 Lake County Safety Council members that meant more than $153,300 in rebates. And this ONLY reflects the 2-percent participation rebate.

That number will go up later in the year when the 2-percent performance rebates are distributed.

The $9 million statewide represents the 2-percent premium rebate earned during the Ficsal Year 2010. And the additional 2-percent performance rebate is available to employers that reduce either the frequency or severity of claims by 10 percent or with the maintenance of both frequency and severity at zero.

Attendance - 10/15/10

Progress in Lowering Workers Compensation Premiums

According to the Ohio Bureau of Workers' Compensation steady financial strength and the declining frequency of workplace injuries/claims has prompted a proposal by the BWC actuarial staff to lower workers' compensation premiums by 5.5 percent for Ohio's 3,800 public employer taxing districts (PECs).

The actuarial staff presented the proposal to the BWC Board of Directors Actuarial Committee in September. The BWC expected the board to vote on the recommendation at its late October meeting.

If approved, the reduction in base rates would take effect January 1, 2011, and would mean a 33.5 percent total reduction in base rates for PECs since 2007.

"For more than three years the BWC has implemented more accurate reserving, improved processes, cut down on expenses and solidfied our investment portfolio.\," BWC Administrator Marsha Ryan said. "This combination of factors is enabling us to further reduce the cost of workers' compensation insurance for the majority of Ohio employers."

"With this proposal, PEC employers will see a 33.5 percent, three-year base rate reduction. Combined with an overall 35 percent base rate reduction for private employers over the same period, the majority of Ohio employers are saving money on their overall business costs, allowing them to compete in their industries and create jobs," Ryan said.

PECs include Ohio cities, counties, townships, villages, schools and special taxing districts. Rates for individual PEC entities differ based on their individual claims history.

While the total, overall premium collected could decrease by 5.5 percent from the current year, some employers may see an increase or no change, depending on their loss history.

BWC Joins Forces With National Leader in Workplace Safety

The Ohio Bureau of Workers' Compensation and the National Institute for Occupational Safety and Health (NIOSH) have entered into a formal agreement to share research and data.

Representatives from the BWC and NIOSH said they believe this strategic alliance will result in reduced workplace injuries and improved safety intervention programs in Ohio and across the nation.

NIOSH Director Dr. John Howard and BWC Administrator Marsha Ryan recently signed the NIOSH/BWC agreement. The alliance is an innovative collaboration intended to reduce workplace injuries by enhancing safety practices for Ohio's work force.

"Workplace injuries often result in a financial strain for businesses," Ryan said. "It is a known fact that prevention is the key to maintaining a safe and healthy work force. As a public workers' compensation system, the BWC has at our fingertips unparalleled, comprehensive data that offers a unique opportunity for enhancing our prevention efforts."

"By partnering with NIOSH, we can share this valuable data to gain the knowledge that will help us understand why injuries occur, and how we can help Ohio businesses prevent accidents in the future, protecting their workforce and their bottom line," Ryan said.

NIOSH is a federal agency and the nation's leading source for work-related illness and injury research. The agency uses injury data from each state to assist with prioritizing action for the most pressing occupational and health safety issues.

"We in NIOSH are excited about this new partnership with the Ohio Bureau of Workers' Compensation," said Dr. Howard. "We look forward to working with administrator Ryan and her staff to advance our common goal of safer and healthier workplaces." He noted Ohio's unique workers' compensation system and superb safety programs, which he described as a national standard.