Workers Comp Audit Stress Reducer
Use It For Your Next Premium Audit

Ohio BWC (Bureau of Workers Compensation) Loses Major Court Case


Ohio BWC Loses Court Case On Interesting Premium Calculations

Ohio map stamp Ohio BWC Bureau Of Workers Compensation

I had previously posted about how the Ohio BWC  is not acting as a true insurer and is using number voodoo to charge smaller employers outrageous premiums while giving certain employer groups enormous discounts. Ohio small businesses were being discriminated against due to their size in the area of Workers Compensation premiums.

Smaller employers do take a hit when looking at cost per unit of coverage.  Of course, small companies always pay more per unit for anything from pens to building rent.

Last week, a judge ruled against the Ohio BWC and issued a restraining order blocking the Ohio Bureau of Workers’ Compensation from implementing its prospective group rating plan for policies incepting next year.

The bureau must implement a retrospective rating plan based on loss history for group policies rather than its established method of determining premiums by anticipating future losses. I still do not understand how they can predict future losses without looking at the prior losses. As I said earlier, it was all number voodoo.

Picture Of Judge Watching Ohio BWC Prosecution In Court

Insurance based on the future only without looking at the past is called naive forecasting.  The Ohio BWC attempted to go outside of the rating infrastructure that has been in place since the 1930’s.   Viable alternatives to insurance seem to appear every year.   The Ohio BWC plan was not one of them.

As I have said many times before in this blog, monopolistic state funds are becoming dinosaurs in the area of Workers Compensation. If a private insurance carrier operated in the same manner as the WSI in North Dakota or the BWC in Ohio, the insurance commissioner would fine them and/or place them in receivership.

An insurance system cannot be operated like a government agency in the current Workers Comp marketplace. There are four monopolistic state funds. I wonder how long they can survive.

©J&L Risk Management Inc Copyright Notice



James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


Get the latest workers' comp news FREE!

This field is for validation purposes and should be left unchanged.