It looks like employers are going to receive a whopping $1 billion in refunds on workers’ comp premiums — a form of insurance that’s meant to compensate any medical expenses honest employees might have accrued after sustaining a work-related injury — which will only be the state’s second rebate since the 90s.
“Sound fiscal management and a well-executed investment strategy continue to put BWC in a position where it can return money to its customers — Ohio’s employers — but also to workers in the form of initiatives that help them stay safe on the job,” Kasich said.
Employers, ranging from corporate entities to mom-and-pop shops to homeowners who hire a maid, have to pay premiums to the Ohio Bureau of Workers’ Compensation if any workers are hurt on the job. The proposal from Governor John Kasich’s administration would provide each private employer with a refund equal to 60% of the premiums they paid between July 2012 and June 2013.
According to Kasich, the bureau’s assets would still remain nicely above their target levels — a “cushion” as he calls it — even with the refund.
“They’ve earned a lot of money. I’m wondering who is doing their investing. Maybe I ought to hire them myself,” joked Kasich. “I like the cushion … because who the heck knows what’s going to happen with the market and this economy over the next year. There’s so much uncertainty.”
This proposal comes only two months after the BWC agreed to shell out $240 million to employers that had been knowingly overcharged on insurance premiums.
“Ohio continues its effort to transform the workers’ comp system to be a better partner with employers and workers to help them succeed and stay safe, and the ability to make these types of significant rebates is part of that effort,” said Kasich.
The BWC’s board of directors will discuss the refund proposal this month at its meeting.