Ohio Gov. Bob Taft announced Thursday an average 5 percent reduction in workers' compensation insurance premiums for Ohio's private employers.
This reduction in insurance premiums for mostly small- and medium-sized businesses will go into effect July 1, 2000, and save more than $70 million.
"All around the country businesses are seeing their workers' compensation rates on the increase -- well, not in Ohio," said Taft. "This announcement means Ohio businesses, consumers and taxpayers have saved more than $1.5 billion in workers' comp costs in the past two years. More importantly, we have done it without reducing the benefits to those injured on the job."
This is the second consecutive reduction in workers' comp insurance rates since Taft took office.
James Conrad, Administrator/CEO of the Bureau of Workers' Compensation (BWC) presented the rate reduction to the Workers' Compensation Oversight Commission who unanimously approved it Thursday.
"This reduction in premiums means we are confident the system will continue on a path of improvement," said Conrad. "Not only are we saving money for Ohio businesses, we continue to improve customer service, reduce delays and help injured workers return to work."
The 5 percent rate reduction is an average for all Ohio employees. Depending on an individual business' record of injuries, their rates could increase or decrease.
This is the sixth rate reduction since system reforms were enacted in Ohio in 1995.