Ohio businesses might be in line for a break on their workers’-compensation premiums.
Businesses could end up with a one-time rebate or see their premiums lowered as the Bureau of Workers’ Compensation’s finances continue to gain strength and the agency studies how — or whether — to respond. It’s also possible that the bureau could implement changes that would not provide a direct financial benefit to employers, such as making the guidelines used to determine the bureau’s financial health more stringent, said Melissa Vince, a bureau spokeswoman.
“There is a whole range of things (that could be done, including) ... doing nothing,” she said yesterday.
The bureau had net assets of $7.6 billion as of June 30, the most in more than a decade.
One of the ideas the bureau is exploring is a one-time rebate that would total $200 million for eligible employers. That would represent about 25 percent of what companies pay every six months into the fund.
“Our investments have done very well,” Vince said.
Andrew Doehrel, president and CEO of the Ohio Chamber of Commerce, welcomed the idea of returning cash to the state’s businesses or lowering their premiums.
“Returning employer dollars to employers, that’s always good,” he said.
Although both methods are effective, each does come with concerns, Doehrel said.
If premiums are cut, there is the worry that they could rise again if reserves shrink, he said.
“Lowering premiums sounds good, but what business needs is predictability,” Doehrel said.
Rebates also can work well, he said, but employers became dependent on those in the 1990s when a steadily rising stock market allowed the bureau to return money regularly to employers in the form of rebates. They were disappointed when the rebates ended, he said.
How much employers pay for workers’ compensation remains an important issue for companies and their ability to add workers in Ohio, he said. If there are lower costs in other states, that can drive companies there, Doehrel said.
“It’s always a hot-button issue,” he said.