Senator Faber’s Weekly Newsletter2/22/10 Recently, the Ohio Senate passed Senate Bill 213, legislation I introduced that would protect Ohio small businesses participating in the Bureau of Workers’ Compensation group rating programs from further “rate shock” during one of the worst economic climates in Ohio history. The Ohio Bureau of Workers’ Compensation (BWC) is in the process of addressing disparity in rates paid by different Ohio businesses to ensure the long-term solvency of the state’s injured workers’ fund. At present, the Bureau intends to move forward with plans to reduce the level of discounts long-afforded to Ohio group-rated companies beginning on July 1, 2010. This is on top of already approved discount reductions and added surcharges since 2005, and will result in significant premium increases for many small businesses at a time when many are struggling to make their payrolls and keep their doors
open. Senate Bill 213 would freeze maximum premium discounts at the level they will be on July 1st for two years, eliminate an added surcharge approved by the BWC and require the Bureau to conduct a thorough study of the premium rating system to determine the best course of action in the future. SB 213 was also amended while in committee to keep politics out of the process by ensuring that any rebates offered to employees in election years must be approved by the Ohio General Assembly. I believe BWC rates must be fair and must adequately cover risk; however, the timing and uncertainty associated with the Bureau’s recent actions to ‘true-up’ rates have caused undue strain on Ohio companies at the worst possible time. When the state’s
unemployment rate is nearing 11 percent, state agencies must be working with – not against – Ohio’s small businesses. The Bureau currently enjoys a surplus nearing $4 billion. If passed by the Ohio House, SB 213 would save group-rated companies approximately $130 million over two years – money that could be reinvested in their companies to keep and create jobs – while not impacting the rates paid by non group-rated employers. Let’s leave these dollars in the hands of Ohio’s small employers where they will do the most good, while the Bureau develops a sound and solid plan for ensuring workers’ compensation rates are fair for all companies big and small. I hope the House will join us and get this bill to the Governor as soon as possible.
