The Ohio Bureau of Workers Compensation is moving to rebate $1 billion in workers compensation premiums to employers in the state.

At the same time, the bureau is asking the state legislature to authorize the agency to allow it to move toward a prospective-payment system and subsequently request its board to rebate an additional $900 million to employers to mitigate transition costs.

However, that was not enough for plaintiffs in a class action lawsuit decided by a Cleveland judge in March that awarded some employers $860 million in overpayments to the fund.

The state is appealing the decision.

Agency officials explained that under the new system, employers would pay in advance of their coverage periods instead of after them, as they do now.

Under the current system, some customers don't pay their bills for coverage they have already received, which drives up costs for other customers.

The new prospective payment system helps prevent that kind of fraud, and keep costs lower, agency officials said.

Additionally, customers would now have more flexible payment options, including new monthly or annual billing options, agency officials said.

The change would also result in a rate reduction of 2 percent for private employers and 4 percent for public employers.

The proposal also calls for tripling investments in worker safety grants.

Steve Buehrer, BWC administrator/CEO said that in addition to injecting a billion dollars into Ohio's economy, “this proposal places a strong emphasis on protecting Ohio's workers.”

He said that “Making investments in safety creates safer workplaces, prevents costly accidents and ultimately results in lower premiums for employers.”

Buehrer and Gov. John Kasic said all three elements of the proposal would be funded from BWC's net assets, which have grown to $8.3 billion and are far in excess of the target funding ratio of assets to liabilities established by the BWC board in 2008.

A spokesman for the agency said the proposal is not linked to the March court decision that ordered the BWC to refund $860 million to some employers.

“This action is unrelated to the court case,” said William Teets, BWC communications director.

He said the potential judgment of approximately $860 has already been reserved, “but we are continuing our appeal.”

But Earl Stein disagreed. Stein is president of Pay Us Back Ohio BWC, Inc. the coalition representing the 270,000 employers injured by the Bureau of Workers' Compensation's alleged illegal overcharges.

“It is encouraging to see Administrator Buehrer and the Kasich administration recognize that the Bureau's $9 billion surplus belongs to Ohio's job creators — not the BWC.

“Now is the time for the administration and the Bureau to recognize that it continues to hold on to another $860 million that was illegally charged to 270,000 employers and comply with the court order to repay those funds,” Stein said.

Special Reports /

Ohio Bureau of Workers Comp Looking to Rebate $1B in Premiums

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