Showing posts with label Law. Show all posts
Showing posts with label Law. Show all posts
BWC rate reform efforts lead to savings for most Ohio employers
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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Senate Working to Protect Small Businesses From Increases to Their BWC Premiums So They Can Keep and Create Jobs
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.
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Senate Bill 220 Would Treat Autistic Individuals Using an Assistance Dog Equally Under the Law
We have all at one time or another seen a person with an assistance dog. These specially-trained animals help individuals with a seizure disorder, vision or hearing impairments or who have other conditions that limit their physical abilities live more active and independent lives.
Recently, assistance dogs have also been used to help individuals with autism. Dogs can be trained to help keep an autistic person safe in large open areas, to redirect repetitive or aggressive behaviors or to calm the person down if they become agitated. The presence of an assistance dog can also provide increased social interactions with others while the person is at school or at work.
While not every person with autism utilizes an assistance dog, those that do often benefit from the additional social and sensory interaction they have when the dog is present. Unfortunately, because autism is not included in Ohio’s laws pertaining to the use of assistance dogs, these individuals could face unequal treatment under the law.
To help clarify this situation and ensure that people with autism who use an assistance dog are able to take their dog anywhere they need to go, I introduced Senate Bill 220 last year. This bill seeks to include people diagnosed with autism in the definition of “mobility impaired person” as it relates to the laws governing assistance dogs.
I personally have seen the difference an assistance dog can make in the life of a person with autism. Some constituents of mine in Springboro have an autistic son, and use an assistance dog to help keep him calm and safe during the day. The dog accompanies him to school and has been trained to reduce emotional outbursts by pawing at him or licking him. The dog also provides a sense of spatial reference when the family is travelling through airports or other open spaces.
The family recently came to the Statehouse to testify in support of Senate Bill 220, and I want to thank them for sharing how an autism assistance dog has benefitted them and how the bill could help other families in similar situations.
Autism is a complex disorder with a wide range of symptoms that affects people differently. Senate Bill 220 will allow those individuals who benefit from the presence of an assistance dog to use the dog in all environments, helping them become more independent and increasing their overall quality of life. Senate Bill 220 is currently under discussion in the Senate Health, Human Services and Aging Committee, and similar legislation has also been introduced in the Ohio House of Representatives.
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.
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Image via WikipediaLegislative Service Commission Internship Provides A Unique Opportunity to Learn About State Government
Each year, legislators consider hundreds of bills and amendments in committees and during House and Senate sessions. None of this would be possible without the hard work of the Ohio Legislative Service Commission (LSC), which provides a variety of technical and research services to lawmakers and staff at the Statehouse, such as drafting and analyzing bills and amendments and providing estimates of state revenue and expenditures.
In addition to their work for legislators, the LSC also sponsors full-time, paid internships each year designed to provide recent college graduates interested in government and politics the opportunity to learn first-hand about the inner workings of the Ohio General Assembly.
The LSC Internship program begins the first week in December and ends December 31st of the following year. No political experience is necessary and the only eligibility requirement is that applicants must have graduated from a four-year college degree program by the start of the program. The program is not limited to those majoring in political science or other government-related fields – in fact, the 2010 class features interns who studied history, business and sports management and several who have also earned master’s and law degrees.
The majority of LSC interns work in the Ohio House of Representatives and the Ohio Senate, where they are assigned to work either for an individual member or for an entire caucus. Other interns work directly with LSC staff in drafting legislation and performing legal or fiscal research. Two interns with backgrounds in telecommunications are assigned to Ohio Government Telecommunications, the agency responsible for televising legislative sessions and producing other government and educational programming.
Here in the Ohio Senate, LSC interns are assigned to members’ offices, where they perform a wide range of activities such as assisting with administrative duties and constituent inquiries, attending meetings, researching legislative issues and writing speeches and press releases. The interns also monitor committee hearings and floor sessions in order to gain more insight into the legislative process. The skills and relationships interns gain during the year will benefit them throughout their professional lives, whether they continue to work in government or pursue a career in another field.
I am pleased to say that the intern that has been assigned to my office this year is also from southwestern Ohio. Mallory Heidorn is a native of Cincinnati and attended Xavier University, where she majored in philosophy, politics and the public and political science. Mallory has been a wonderful addition to my office, and I hope she enjoys her time working in the Ohio Senate.
Applications for the legislative internship program are due by April 1 and the deadline to apply for a telecommunications internship is May 31. For more information about the program or to download an application, please visit LSC’s Web site at www.lsc.state.oh.us/internship
As always, 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.
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Image via WikipediaOhio House Supports Telecommunications Reform Bill
Legislation levels the regulatory playing field
Columbus—State Representative Peter Beck (R-Mason) last week announced the passage of House Bill 276 from the Ohio House of Representatives. This legislation revises the state policy regarding telecommunications service and repeals current law governing alternative regulation of telephone companies.
House Bill 276 will create a more favorable environment for competition in telecommunications, while retaining consumer safeguards and lead toward competitive pricing. It will help establish uniform regulations for telecommunication services and permit the industry to invest in Ohio’s infrastructure and technology, instead of overly burdensome regulatory compliance.
“Communication technology has no doubt changed over the years and by passing this legislation, the General Assembly has allowed for competition in the communications industry,” Rep. Beck said. “Like with many pieces of legislation, compromises must be met between interested parties and I believe that with this bill, consumers and companies will benefit from the modernization of the way Ohio regulates incumbent telephone companies.”
Since 2001, traditional landline telephone companies have lost 3 million customers due to increased competition from rapidly advancing technologies, including wireless and digital telephone service. More than 20 states have adopted telecom reform laws, which will spur investment in new technologies and create vital jobs.
House Bill 276 is supported by the Ohio Chamber, National Federation of Independent Business, Ohio Telecommunications Association, AT&T, and Institute for Policy Innovation.
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