from Frank Gates
On May 2, the Bureau of Workers’ Compensation and Gov. John Kasich proposed a $1 billion premium rebate for all public and private employers.
If approved by BWC’s Board of Directors in late May, the $1 billion in rebates for the approximately 210,000 employers would equal about 56 percent of employers’ most recent annual premium and would be sent to employers by check from the BWC. The proposed rebates will apply to employers who are in a discount program and those who are not.
In addition to the $1 billion rebate, two additional proposals were announced. The Safety and Wellness Grant Program budget would be increased from $5 million to $15 million.
The second of the new proposals would ask the Ohio General Assembly to modernize the premium collection model by authorizing BWC to move to a prospective payment system from the current model where employers pay their premium in arrears. To do so, the BWC would issue a $900 million credit to employers to offset the costs associated with the transition.
These proposals would be funded by the BWC’s net assets, which are approximately $8.3 billion. The net assets level far exceeds the target net assets ratio established by the BWC Board of Directors.