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Ohio Workers Comp Lawsuit Revisited After Court Decision

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Ohio Workers Comp Changing With Recent Court Decision

The Ohio Workers Comp lawsuit result indicated a bad result for the monopolistic carrier.  I had posted on this situation November 22nd. If a judge can grasp why the state cannot artificially structure the Workers Comp premium rates for Ohio business, why is the GOP having such a hard time figuring out this simple point?

Graphic of Ohio Workers Comp Map Colorful
123RF

Surprisingly, GOP lawmakers said they want to preserve a system used by the state to set job-injury insurance rates. This would override a Cuyahoga County judge who recently ordered the Ohio BWC to structure their premium rates similar to NCCI. In my last post on the BWC, a group of businesses had successfully argued that the bureau’s group rating system made their premiums unfairly high. The steep discount received by the large business pools have to be made up somewhere and that is with increasing small business premiums.

Small businesses already take on more of a premium risk, as they cannot spread a loss over a large amount of payroll. Therefore, the system already discriminates against a business with a smaller amount of payroll. This is an acceptable premium slant towards large businesses. There is really no way to level the playing field in a NORMAL Workers Comp premium structure such as NCCI or most of the State Rating Boards. That is the nature of a normal Workers Comp system.

Picture Court Decision Ohio Workers Comp Result
StockUnlimited

I do not understand why the Ohio Republican party would want to continue a system in which groups of businesses receive unfair, heavily-discounted rates. The large business premiums are subsidized by individual businesses. Republicans want to pass a bill in the final month of the legislative session while they still control both the House and Senate.

This gets back to what I have said many times before in this blog. Monopolistic state funds are being administered like a government agency, not as a Rating Bureau. There have been so many scandals with the Ohio BWC. I recommend that Ohio immediately change to having NCCI oversee their Workers Comp program. West Virginia and Nevada did it with great success.

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt 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

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