Ohio's business community can take a sigh of relief as the state continues to maintain its status as one of the nation's most affordable for worker's compensation premiums. According to a recent study by the Oregon Department of Consumer and Business Services, Ohio's worker's compensation rates are the fifth lowest in the United States, with the premiums effective as of Jan. 1, 2024, according to the Bureau of Workers' Compensation (BWC).
Remaining consistent with the 2022 study, Ohio's placement in this fiscal hierarchy is notable, standing equal yet having decreased its premium index rate from 83 cents per $100 of payroll in 2022 to 68 cents in 2024, according to the Ohio Bureau of Workers’ Compensation Administrator/CEO Stephanie McCloud in a statement obtained by Ohio BWC. This makes Ohio one of four states, alongside North Dakota – which boasts the lowest rates – to be the exclusive provider of worker's compensation coverage.
Ohio Governor Mike DeWine praised the state's performance, stating, "Ohio continues to be one of the best states for business owners," bolstering his stance by highlighting "Ohio’s workforce dedication to workplace safety." Such improvements are a stark contrast to the state’s ranking in 2008, where it sat third highest in worker's compensation premiums nationwide.
The upcoming July will grace private employers with another cause for celebration, as a 6% rate reduction, set to take effect on July 1, will streamline a further decline in premiums by nearly $60 million. This is part of a wider trend that has seen Ohio BWC's overall private employers' rates plunge by 50% since 2019 and by 70% since 2011, according to a link provided by the Ohio BWC — a considerable dip by any business ledger.
It's not just the private sector reaping the rewards; public employers have watched their rates spiral downwards by 57% since 2011. With a service record dating back to 1912, the Ohio Bureau of Workers’ Compensation stands as a significant institution, catering to 258,000 public and private employers. As one of the largest state-run insurance systems in America, the Ohio BWC, which boasts assets of approximately $23 billion, shows a strong blend of longevity and adaptation in the dynamic landscape of workplace safety and financial prudence.
