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Citing a lackluster economy and soaring medical costs, the Ohio Workers' Compensation Oversight Commission, based on a recommendation by the Ohio Bureau of Workers Compensation (BWC), approved a 9-percent premium rate increase for policy year 2003. In addition, a one-time premium dividend was not recommended for the bill employers will receive in July.

The premium rate increase of 9 percent, on average, will go into effect for the July 1, 2003, to June 30, 2004, policy year, with the first bill due February 2004. Without the dividend credit, Ohio's employers will be responsible for paying 100 percent of their premiums for only the second time since 1995.

OFBF Director of Member Services Dan Rapp oversees the OFBF Workers' Compensation Group Rating Program. He said the rate increase and loss of dividend credit apply to all employers, whether they participate in the OFBF group or not. However, because group rating participants receive a 90 percent discount, they will experience less overall financial impact.

For example, if an employer pays $10 premium for each $100 in payroll, Group Rating participants pay $1 in premium. With the 9 percent rate increase, the amount will go up to $1.09 for each $100. For nongroup members, the rate increase means an employer who pays the $10 for each $100 in payroll will see the rate go up to $10.90 for each $100.

To lessen the immediate financial impact, BWC will allow employers to participate in a 50/50 payment option program, which enables Ohio businesses to pay only 50 percent of their premium costs in August. Companies will then be billed the remaining 50 percent in November.

Rapp said the BWC has worked hard over the last several years to create an environment that is more business friendly in state of Ohio.

"OFBF has worked with OBWC on study committees looking at what can be done to manage rising costs of health care that have drastically impacted workers' comp premiums in the last few years. It's in our employer members best interests to continue to do the best that they can to provide a safe work environment for employees that reduces accidents and reduces claims," he said.

Rapp encourages employers that aren't currently involved and who may qualify for participation in the Group Rating Program to contact Account Executive Kathy Redmond at GatesMcDonald, OFBF's group administrator. Redmond's telephone number is 614-777-3401. "We would love to have the opportunity to evaluate them for participation," Rapp said.