State may give $1.5B back to employers

Ohio’s public and private employers stand to get back most of the workers’ compensation premiums they paid over the course of a year.

The state on Monday proposed a $1.5 billion rebate in premiums, the latest in what has been a string of rebates and reductions in premiums totaling nearly $10 billion since 2011.

The $1.5 billion rebate equals 88% of the premiums private employers paid for the year that ended June 30, 2018, and public employers paid in 2017, according to the Ohio Bureau of Workers’ Compensation.

The bureau credited the rebate to strong returns on the agency’s investments coupled with lower claims. The agency has prioritized safety and wellness programs.

Earlier this year, the bureau approved a 20% cut in premiums that will go into effect July 1 for private employers. The cut is the largest in nearly 60 years and will reduce premiums to the lowest levels in at least 40 years.

The bureau reduced rates for public employers by 12% in a move that went into effect Jan. 1.

Monday’s announcement was made by Gov. Mike Dewine and bureau CEO Stephanie Mccloud at Dynalab, an electronicsmanufacturing company in Reynoldsburg that has about 250 workers.

The company’s manufacturing director, Craig

Reiselt, said the rebate will save the company tens of thousands of dollars that it will invest in new machinery or in training.

“To stay ahead of the technology, we’re investing every year,” he said.

The bureau insures about 242,000 public and private employers.

The proposal will go to the bureau’s board of directors Wednesday with a vote scheduled for the board’s June 28 meeting. If approved, checks should go out in September.

Of the $1.5 billion, $114.4 million will go to local

governments and $49.7 million will go to public school districts.

State law requires employers to maintain workers’ compensation coverage to protect workers who get hurt or sick on the job. The premiums are paid into the fund that supports claims.