Last Thursday, the Ohio BWC recommended a 12% reduction in next year’s rates for Ohio’s school districts, cities and other local-government employers. This follows the BWC’s decision to issue another $1.5 billion in rebates to all employers, public and private. Those rebate checks have been going out this summer.
The BWC attributes the new rate reduction to declining claims and relatively low medical inflation costs. If approved, the reduction would be the second largest decrease for Ohio public employers since 1985. According to the BWC’s chief actuarial officer, Chris Carlson, there have been seven rate decreases for local governments since 2011, totaling a 41.8% rate reduction, for a statewide financial impact of $435 million.
If the Bureau’s board approves the reduction at its meeting on August 24th, the new rates will go into effect on January 1, 2019.