Ohio will reduce workers’ compensation insurance rates by 7%. This change, effective from July 1, 2024, aims to save private employers an estimated $71 million in the next year.
The Ohio Bureau of Workers’ Compensation announced this decision, continuing a trend of rate reductions over the past decade.
Background on workers’ compensation in Ohio
Workers’ compensation provides financial and medical benefits to employees who suffer work-related injuries or illnesses. Employers fund this system through insurance premiums, which are periodically adjusted to ensure balance and sustainability. In Ohio, the BWC oversees this program, setting rates and managing claims to ensure that injured workers receive the necessary support while maintaining affordable costs for employers.
Details of the rate cut
The new 7% reduction in workers’ compensation rates marks a continuation of Ohio’s efforts to decrease costs for private employers. The latest reduction is projected to save employers $71 million.
Workers can expect the continuation of support in the event of work-related injuries or illnesses. The rate reduction should not affect the quality and availability of benefits. The focus is on maintaining a balance where both employers and employees benefit from a sustainable workers’ compensation system.
For employers, the rate cut translates to lower operating costs, potentially allowing for increased investment in other areas of their businesses. This financial relief is especially beneficial for small and medium-sized enterprises, which often operate with tighter budgets and margins.
By reducing workers’ compensation premiums, Ohio aims to boost economic growth and encourage job creation while still supporting workers.