May 24, 2010

A column by State Senator Shannon Jones suggested Ohio’s workers’ compensation system is stifling small business growth in the state. I assure you this is not the case.

Over the past three years, BWC and its Board of Directors have been diligent in bringing stability, fairness and equity to the rates Ohio employers pay for workers’ compensation insurance coverage. The results are phenomenal. Effective July 1, 2010, Ohio’s base rates will be 35 percent lower than they were for the 2007 policy year–their lowest point in at least two decades. Our efforts have made Ohio’s rates among the most competitive for future economic development in the Midwest.

We have taken strategic and successful steps to not only lower the base rates that are used to compute workers’ compensation insurance premiums, but to significantly lower premium costs for more than half of Ohio’s private employers. For the July 1, 2009 policy year, this group of employers experienced a more than 25-percent rate drop, resulting in a collective $139 million in savings in just one year.

Utilizing the expertise of professional actuaries and the recommendations of the comprehensive study, over the past three years, BWC and its Board of Directors have made gradual reductions to the group discount to bring fairness and to guarantee employers are paying the right rate for the risk they pose to the system. On July 1, 2010, that discount will be set at 51 percent, giving group-rated employers a more than half-off discount to their workers’ compensation costs. This is a significant discount for those who qualify, and it is a figure that is in a range of actuarial soundness.

Sen. Jones also made reference to a BWC surplus. This notion of a surplus is a common misconception. Like any insurance company, BWC is required to have reserve funds set aside to manage the system’s 1.3 million open claims. Unlike private insurance companies, BWC is able to discount those reserves, meaning that our “surplus” is actually less than a private company would be required to maintain. Many claims require a one-time payment for medical fees, but a large number require medical and indemnity payments for many years, and in our most severe cases, over the lifetime of the injured worker. Our oldest open claim was filed in 1940 – 70 years ago! Last year we received about 120,000 new claims.

Finally, the issue of opening Ohio to a competitive system was addressed in the column. While lawmakers debate the value of a competitive system over a monopolistic system, BWC continues to focus on providing outstanding service to employers and injured workers. These services come with little overhead and a great return-on-investment for Ohio employers. Of the nearly $2 billion Ohio employers pay in premium each year, 96 percent of their investment goes directly to the care and well-being of injured workers and their families. Private insurers average about 69 cents of every dollar on customer care and service. BWC is able to operate with such efficiency because as a state entity, the Bureau is not subject to federal and state taxes, does not operate for a profit and charges in arrears, allowing the employer to only pay for coverage they used in the previous payroll cycle. Additionally, BWC’s cost savings are passed on directly to the employer through lower premiums.
While reform may be a difficult process, BWC and our professional board of directors have refused to allow the system to continue to function at a less than optimal level. Today’s BWC is much different, delivering fair, stable and equitable premium costs for Ohio employers. Our benefits for injured workers are competitive, and promote a safe, swift return to work. And new, safety-based cost saving programs are helping to further lower costs for employers, while enhancing safety efforts for Ohio’s workforce. BWC is undergoing a positive transformation that has its roots in cost savings, safety and outstanding services.

Contributed by:
Marsha P. Ryan, Administrator
Ohio Bureau of Workers’ Compensation

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May 14, 2010

What an exciting weekend of racing at both tracks,  Friday we unloaded the Rebel 105.9 late model at Kil-Kare Speedway to find out that they were going to shorten the race program to just a feature race.   The incoming rain was a real threat.   We had a good first practice and at that time we were the fastest car there thanks to the Estes racing fuel.    We also had a great set up the by the crew.    We chose not to practice and save our tires for the feature so we watched the second practice.  Oakley Asphalt car was able to take me off the fast time spot.  We went back out to try to pick up a half tenth then without warning the power steering line broke.  I killed the engine and tried to roll off the track.   We made quick work on fixing the line thanks to a competitor, Oakley Asphalt.  Yes, the very team that we competing against.   I was a little concerned in qualifying, because the left front tire got soaked with oil.  However, the GreenPro Landscaping Koehlke Component NASCAR Whelen Late Model #4 got hooked up and we pulled out a second place qualifying time. 


            In the feature they inverted to 5th position so I started 4^th, I missed my mark on the start and dropped to 6^th.  In a few laps, I was starting to get into some real tough racing with the #17 car.   Every time I started to pass on the straight away, I would run out of room.  I would have to back off or risk hitting the wall.  After my second attempt to pass him, I decided to pass him on the outside  in turn one or two and finish in the turn three,  I was able to make that pass and quickly catch up to the next  group of race cars.  It was a three way race with Gary Estes and Oakley Asphalt car.  Gary was in front by just a few feet and I was side by side and wheel to wheel for around six laps with the other car, what was awesome. 


            Finally, I was able to dive on the inside as the other two cars competed.  Someone got Gary loose and I was able to get the second place spot.   I set sail for the leader and realize my water tempeture was hotter than it should have been, probably because I was so close to the car in front not enough air was getting into the radiator, so I finished the race for a second place finish.


            Saturday, we headed to Spring Valley to the Motorcar Auto Body Shop.  We hooked up to the trailer and picked up the crew.  We were then off to Columbus.  It was a big temperature change from Saturday! 


            In our first practice, we were in the mid fourteen forties.   The second practice, Gary made some good adjustments to the car.  I was able to run low teens.   A few spectators said they clocked me close to the track record.  Unfortunately in qualifying, the best I could get was a 14.33.  This time put me in the 6^th fastest.  This put me on the inside for the start of the feature which was not the preferred line that night. I had to drop back in the field four positions before I could get an opening to get to the outside. I finally was able to start racing towards the front.   The 28 car spun out in turn one.  I finished 5^th.  I was not the finish I wanted put it was a good day at the track.


            Last week, we were rained out at Columbus on Saturday but as it turns out, it was a blessing as Tom and all the crew at Pisanello’s is now a new sponsor.  I love the bread sticks there! Yum! 
Thanks Sloan and the Crew
http://www.youtube.com/watch?v=Ctqn25xDWe0

http://blog.jimmiejohnsonchevrolet.com/2010/04/sloan-henderson-has-her-eye-on-nascar.html

Qualifying Queen Sloan set fast time again

The weather was perfect Friday night. I was so excited about getting out on the track after so many rain cancelations. It was demolition trailer race night at Kil-Kare so there would be no heat race. We would only be qualifying and then the feature race. I was really happy with the Rebel 105.9 NASCAR Whelen Koehlke GreenPro #4. I went out and got fast time again! Kil-Kare inversion was a 7 so I started on the inside of the 4th row just behind Gary Estes in the Bond Machine Weiler Welding car. I was going to have to try to get to the outside row as soon as possible hopefully between the Oakley asphalt car and the Estes oil car if I had a chance to get to the front. This was going to be tough with no mirror or radios.

We did our two warm-up laps in the Rebel 105.9 Late Model and I thought something was wrong with my car. The green flag dropped and my rear end was hopping. My rear axle cap broke. In order to explain that in a little more in detail, the engine spins on a drive shaft through a Bert clutchless transmission. It then goes to the rear end where the spinning action is split between the two axles by a ring and pinion gears. Next, the 600 plus hp is delivered to the hubs by the axle. The point where the power is transferred to the hubs is where the axle caps is located. The axle caps are a small piece on aluminum that would fit in to your hand and weight around one pound. We check these regularly but stuff happens. I was done for the night. I was not a happy but those things happen in racing. My crew does a great job each week and it’s very frustrating for them and me when equipment fails. We were also grateful it was not as more expensive problem.

I would like to thank Classic Style Barber Service and Chips and Clips Lawn Services for becoming one of my new sponsors this week. Hunter Water Conditioning and Cox’s Service Station and Repair are considering being a local supporter. We are also still working with some local Chevy dealers and hope to fill our short fall in the co- anchor partnerships for this season. We are truly blessed by Green Pro Landscaping, Koehlke Components, The Rebel 105.9, Dempster Tire in Middletown, Estes Oil, First Command Financial, Line-X on Conover Drive, Miracle Welding, Shannon McGuire at Salon 122 in Hunter, Springboro Hardware, Larry and the crew at National Coating Systems Inc on Shotwell Drive, and Dayton Christian Schools. I have to also thank Miller printing and all of you for buying the paper. Dad gets so stressed out about the other sponsor we need but I know God will provide just like in the past.

Saturday, I got up and checked the weather. It looked like it was going to stop raining at Columbus long enough to sign in. We talked to Gary and headed to the Motorcar Shop in Spring Valley. We then got the call that Columbus was cancelled due to the pending rain. If I could make money on betting on the weather, I would be betting on rain on Friday and Saturday! Nothing can take away the bummed out mood like a pizza so I called Mom and Chase. We met at Pisenello’s for a great pizza. We got to meet some fans that were eating there. I would rather be racing but it ended up being a great. Sloan and Crew

Thanks, Steve
Sloan Henderson Motorsports, LLC
"Today Is Tomorrow's History"
www.sloanhenderson.com
Phil 4:13
937-533-6271

Guest Column From State Representative Peter Beck

Honoring our Men and Women in Uniform

With Armed Forces Day on May 15^th and Memorial Day on May 31^st, we have an opportunity to thank those in our community who answered the call to duty and protected us from threats both domestic and abroad. Here in the Ohio Legislature, we take special pride in honoring the service members and veterans in Ohio by enacting legislation to make life easier for them and their families.

Our nation’s military veterans are paradigms of the American spirit and everything our country stands for. While we can never fully repay our service members for their sacrifices, we can honor them by never taking our freedoms for granted. Every time we fly the Stars and Stripes or cast a vote in an election, we uphold the values that have been built for us by the sweat and blood of men and women in uniform.

Elmer Davis of the United States Office of War Information during World War II said, “This nation will remain the land of the free only so long as it is the home of the brave.” Because hundreds of thousands of brave Americans throughout history have risked their lives for our nation, we have the benefit of living every day in freedom. We sleep soundly at night with the knowledge that we and our children are in good hands.

Today, approximately 25 million veterans live in America. These heroes are mothers and fathers, sons and daughters who answered the call to defend their country. Whether they were fighting in the trenches or marching through the deserts, crossing jungles or storming beaches, they risked everything to protect the American dream and the future of our children. It is essential not just on special holidays, but every day we live in freedom, that we show our appreciation for those who believed that this country is worth risking their lives for.

As a former Marine Corps sergeant during the Vietnam War, I am especially honored to work toward enacting legislation that benefits Ohio’s 6,000 Army, Navy and Air Force recruits, as well as all the veterans living in our great state. This May, I encourage you to take a moment to commemorate all those who have served in our military, as well as those who gave their lives for our nation.

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Rep. Beck may be reached by phone at (614) 644-6027 or in writing to State Representative Peter Beck, 77 South High Street, 10^thfloor, Columbus, OH 43215. He is also available via e-mail at district67@ohr.state.oh.us.

Ohio Legislature Acts to Help Protect Teenagers in Abusive Relationships

In 1992, Tina Croucher, a part-time student at Miami University Middletown, was shot and killed by her ex-boyfriend after he broke into her family’s home. Fifteen years later, Johanna Orozco, a Cleveland-area high school student, was shot in the face by a former boyfriend who had been recently released from prison for raping her. Both Tina and Johanna had been abused by their attackers during their relationships.

Johanna luckily survived her attack, but these incidents offer just a glimpse into what has become a disturbing reality for many teenagers and young adults. Last year, a series of stories in the Columbus Dispatch found that Ohio teens ages 15 to 19 are twice as likely to experience dating violence as they are to be injured in a car crash. And while adults who find themselves in an abusive relationship can obtain a protection order or take other measures to help keep their attackers away, no such option has been available to teenagers.

To help better protect teenagers who are victims of dating violence, the General Assembly recently passed House Bill 10, which gives juvenile courts the same authority to issue protection orders as common pleas courts. While this bill will not put an end to dating violence among young adults, it will provide victims with an additional layer of defense – an individual who defies a protection order and goes to a victim’s home or work, calls them on the phone or damages their property can be arrested immediately. House Bill 10 has been signed by the governor and will take effect in June.

Legislators are also working to help educate young people about the risks associated with dating violence and unhealthy relationships. Last year we passed House Bill 19, which requires schools to include dating violence prevention in their health curriculum for students in grades 7 through 12. Fittingly, House Bill 19 has been named “Tina’s Law” in recognition of Tina Croucher and her parents, who have spoken to thousands of southwest Ohio students about dating violence and how teenagers and young adults can stay safe.

The heartbreaking stories of Tina Croucher and Johanna Orozco and others who have experienced violence and abuse at the hands of their boyfriend or girlfriend are a stark reminder of the need to protect all victims of domestic violence and ensure that their abusers are held accountable. Although House Bill 10 and House Bill 19 will not prevent all abusive relationships, they will help increase awareness of this issue and save lives.

Please do not hesitate to contact my office if you have questions or concerns about any state-related matter. You can reach my office by phone at (614) 466-9737, by e-mail at SD07@senate.state.oh.us or by writing State Senator Shannon Jones, Ohio Statehouse, 1 Capitol Square, Columbus, OH 43215. I look forward to hearing from you.

Guest Column From State Representative Peter Beck

Efficiency is a Vital Part of Government Accountability

As a small business owner of nearly 20 years, I understand the importance of condensing spending during a recession and saving in a prosperous economy. Businesses routinely tighten their expenditures to fit a tough budget, and likewise, our state government should make the same sacrifices and maintain a high standard of fiscal responsibility.

However, rather than examining spending and reducing waste, many lawmakers in the Statehouse continue to channel tax dollars into unnecessary, inefficient or ineffective programs while handing the taxpayers the bill. Consequently, families and businesses felt the sting of our state’s high-tax, anti-growth policies this past Tax Day when they were forced to surrender additional funds as a result of House Bill 318’s tax increase.

I believe that rather than relying on the citizens and small businesses of Ohio to sustain our government bloat, we have a responsibility to ensure that the dollars we do spend are successful and streamlined. In an effort to reduce the burden on our already overwhelmed taxpayers, House Republicans proposed the “Future of Ohio” government reform package to make Ohio’s government more cost-effective and accountable. This package of 10 bills would trim waste from the budget while focusing state spending on the programs and services that Ohioans have come to rely on.

One of our caucus’s cost-containment measures is a bill to streamline Ohio’s more than 300 boards and commissions, while eliminating waste within state agencies. House Bill 25 was introduced in February 2009 by Representative John Adams (R-Sidney) to ensure that the taxpayers are not paying the government more than they should. It would consolidate the number of executive cabinet departments from 24 to 11 (compared with the federal government’s 15 departments) based on similar functions and missions. Had this legislation been enacted, it could have saved $1 billion annually and could have filled Ohio’s budget deficit without raising taxes or accruing more debt.

Continuing our caucus’s commitment to a cost-efficient, accountable state government, Representative Barbara Sears (R-Maumee) introduced House Bill 240 to eliminate waste, fraud and abuse from Ohio’s Medicaid system. This legislation takes into account the more than $400 million in suggested savings that were found by the Ohio auditor of state in 2006 and would have helped to save $122 million each year. Unfortunately, this vital efficiency measure has remained stalled in committee for months.

These bills would have required state lawmakers to look at internal waste before asking you, the taxpayer, to relinquish more of your hard-earned income. Although the House majority has refused to allow committee votes on these proposals, my Republican colleagues and I continue to fight for solutions that will not only render immediate savings but also fundamentally improve the structure of state government.

Ohio’s continuous growth of spending is unsustainable without also squeezing the taxpayers for every penny they have. With an impending $8 billion budget deficit, lawmakers need to start working today to prepare for what we already know will be an excruciatingly painful budget next year. As state representative of the 67^th Ohio House District, I will continue to work on your behalf toward a more efficient, effective state government.

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Rep. Beck may be reached by phone at (614) 644-6027 or in writing to State Representative Peter Beck, 77 South High Street, 10^thfloor, Columbus, OH 43215. He is also available via e-mail at district67@ohr.state.oh.us.

As someone who comes from a family of small business owners, I understand the importance of making sure Ohio creates an atmosphere that is conducive to business development. Small businesses are the backbone of our economy, but issues such as increased taxes and government regulation are making it more and more difficult for them to support a robust workforce.

The decision to “freeze” the income tax cut all Ohioans were promised in 2005 means that come tax time, refunds will be smaller or in some cases, people will have to write bigger checks than they anticipated. With many small business owners paying their taxes via the income tax, this move could not come at a worse time. Additionally, the recently-passed health care legislation places new mandates and costs on businesses. Now many of these companies are about to be hit again with increased premiums from the Bureau of Workers’ Compensation – a move that will further drive up the cost of doing business here in Ohio.

 

Currently, the BWC is working to ensure long-term financial stability of the state’s injured workers’ fund, in part by addressing the disparity in premium rates paid by different Ohio businesses. For many years, certain group-rated companies have enjoyed substantial discounts on their premiums. The BWC is planning to reduce these discounts beginning July 1 – in addition to previously-approved discount reductions and added surcharges since 2005 – meaning many employers will see their premiums increase. Given the current economic challenges facing businesses throughout Ohio, increasing workers’ compensation premiums now would only place an additional burden on already-struggling employers.

To help reduce the financial strain this move would place on Ohio’s small businesses, the Senate passed Senate Bill 213 earlier this year. The bill would freeze maximum premium discounts at the level they will be on July 1 for two years and require the BWC to conduct a thorough study of the premium rating system. This would give the BWC time to develop a plan for determining workers’ compensation rates that are fair to all Ohio companies, regardless of size. 

It is estimated that the BWC currently has surplus of roughly $4 billion. SB 213 could save small businesses approximately $130 million over two years – money these companies could use during these difficult times to reinvest in their business and create new jobs. Senate Bill 213 is currently in the House Insurance Committee, and I am hopeful that members of the House will join us in addressing rising workers’ compensation premiums and their effects on small businesses.

In addition, the Senate is also examining possible changes to how Ohio’s workers’ compensation system is administered. Ohio is one of only a few states to have an entirely state-run workers’ compensation system, and now is the time to see if there are alternatives to our current approach that would benefit employers and businesses while still protecting injured workers. That is why we passed Senate Resolution 118, which established the Competitive Workers’ Compensation Task Force. The group is tasked with studying alternatives, including market place competition, with respect to the worker’s compensation system in Ohio.

Members of the task force represent employees, employers, insurance companies, managed care organizations, third-party administrators, local governments, business owners, lawyers and legislators. The group will evaluate the workers’ compensation insurance options currently offered by the BWC to determine if they are competitive with those available in other states. They will also look at the efforts made by other states to open their workers’ compensation markets to private competition. The group must submit a report detailing their findings to the Governor and legislative leaders by December 15.

One of the top complaints legislators hear from business owners is how rising BWC rates are impacting their ability to compete and create new jobs. A rise in premium rates also makes it more difficult to attract new businesses and jobs to our state, as the workers’ compensation system is one of many factors companies use in deciding where to locate and expand. By studying options to our current workers’ compensation system, we can determine if any changes are needed in order to ensure businesses continue to see Ohio as an excellent place for relocation and expansion.

The BWC has taken numerous steps in recent years to change its operations and the way it determines premiums; however, there remains much work to do to ensure the system is working with small businesses and not against them. SB 213 and SR 118 will help determine the best course of action to keep employers’ premiums affordable while continuing to protect injured workers.

Please do not hesitate to contact my office if you have questions or concerns about any state-related matter. You can reach my office by phone at (614) 466-9737, by e-mail at SD07@senate.state.oh.us or by writing State Senator Shannon Jones, Ohio Statehouse, 1 Capitol Square, Columbus, OH 43215. I look forward to hearing from you.