August BWC Update: Program and Premium Changes for the Year Ahead
Ohio BWC will be making some changes for the 2024 policy year (beginning 7/1/24), some of which may have a small advantage for certain policyholders.
Employers will still be subsidizing BWC’s administrative fund as they always have, but House Budget Bill 31 will change how the money is accounted for. Right now, state fund employers are paying base rates plus 29.01%, and that percentage is an administrative fee that goes into the fund. In the future, the admin fee will be fully baked into the base rates, resulting in rates that are roughly 20% higher. All told, employers shouldn’t see a huge difference in amounts paid to BWC. This will apply to both public and private employers, beginning on their respective 2024 policy year start dates.
Another change will allow for potentially better refunds from post-policy year savings programs, like Group Retro, Safety Council, etc. In prior years, those rebates were calculated based on a percentage of “standard premium” – in other words, premiums before BWC’s 29% admin fee was tacked on. If an employer paid $50,000 in annual premium to BWC, only $35,500 if it was counted as premium that they’d be rebated on. Program credits and refunds will begin using full premium in 2024, instead of peeling off the administrative portion of premium when calculating refunds and credits.