At its June meetings, the Ohio Bureau of Workers’ Compensation (BWC) presented a proposal that would significantly change how private employers are rated beginning July 1, 2027. The plan would reintroduce Group Break-Even Factors, raise the credibility cap and reduce premium size credits in an effort to narrow a long-running performance gap between group-rated and individually rated employers. After significant questions from stakeholders, the Actuarial Committee tabled the proposal for further review.

The Ohio Manufacturers’ Association (OMA) agrees that any disparity in the rating system deserves careful examination. The concern is not whether the issue should be addressed, but whether employers have been given enough information to evaluate the proposed solution.

According to BWC’s own materials, the proposal represents only the first phase of a broader effort that could increase group-rated employers’ premiums in future years. Yet employers have been shown projected outcomes without the detailed methodology needed to fully understand how those impacts were calculated.

There is also no immediate need for action. The State Insurance Fund remains financially strong, the proposal is revenue neutral overall and a business-community study already underway is expected to provide additional insight into the issue.

“Manufacturers support a workers’ compensation system that is fair, transparent and based on sound data,” said Jacob Sargent, OMA director of public policy services. “If the Bureau is asking employers to accept significant changes to how they are rated, employers should be able to see the full analysis behind those changes. With a study already underway and no financial pressure to act immediately, taking the time to get this right is the responsible course.”

OMA will remain engaged as the proposal returns to the Actuarial Committee and will continue advocating for a transparent, data-driven approach that gives employers confidence in any future changes to the rating system. 6/22/2026