From the Ohio Society:
State agencies will see a 13% rate cut at the Ohio Bureau of Workers’ Compensation (BWC) in the new fiscal year and, if projections hold up, private employers might get a double-digit price drop as well.
The BWC Board of Directors approved the 13% rate cut Jan. 29 for state government employers, along with a 13.8% decline in agency contributions to managed care, effective July 1.
Awaiting final approval next month is a baseline projection of 8.6% in cuts to private premiums and an “optimistic” projection of 13.1%, according to FY17 figures announced last week. The BWC noted, however, that base rates are only one part of a premium calculation that varies according to risk classification, payroll changes and the like.
“The premium change will vary for employers, and some employers may see increases,” BWC actuary Oliver Wyman said.
Wyman said the average cost of medical services for wage-loss injuries continues to grow, and is projected to increase 3.5% to $35,000 for private participants beginning July 1. Average health care costs for injuries without wage loss is projected to grow 2%.