Monopolistic Ohio Overcharges Companies $845,000,000

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Monopolistic Ohio Overcharges Mega Amount

Monopolistic Ohio and its Workers Compensation bureau had been the center of controversy a few years ago with a few questionable investments.  A judge recently ruled that The Ohio Bureau of Workers Compensation (BWC) overcharged insureds $845,000,000.

Graphic of Map with Rock Monopolistic Ohio Overcharges
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The average refund payable per each employer is $3,254.00.   The overcharges occurred over many years. As expected monopolistic Ohio BWC is appealing the decision.  The basis of the judge’s decision was that there were two Ohios for Workers Comp coverage.  The two groups were:

  1. A group of preferred companies that were allowed to pay lower rates
  2. All other covered companies in Ohio that were possibly subsidizing group #1.

Actually,  there are a few major carriers writing preferred policies in certain states.    Virginia allows this type of preferred policy.

Of course,  the Experience Modification system (Mod) would naturally split these groups into many risk groups.   The policy Discounting Structure would also break up groups that would have each employer being responsible for its own Mod and discounts.

Group #2 may have possibly been a Risk Pool of sorts.  The group seems too large to have been analyzed as a Risk Pool.

The BWC released a figure for Group #2 ‘s higher premiums.  The BWC paid out $1.26 for every $1.00 written in Workers Compensation premiums.   The BWC did not provide any numbers for the allegedly safer group.

Monopolistic Ohio needs to follow the examples of the other rating bureaus if they are going to survive much longer.

©J&L Risk Management Inc Copyright Notice

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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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