$1 billion in workers compensation dividends to be distributed in Ohio
Ohio businesses may be receiving significant dividends from the state’s workers compensation fund this month. Governor John Kasich is keen to see funds returned to employers after returns from the workers’ compensation fund were higher than had been expected. These returns are now before the Ohio Bureau of Workers Compensation, which will determine whether they are necessary or not. If the agency approved of the dividends, more than $1 billion in funds could be returned to employers throughout the state.
State agency debating approval of funds
If the returns are approved by the Ohio Bureau of Workers Compensation, funds will be returned to the state’s businesses between June and July of this year. The agency notes that this will be the largest sum returned to employers in the history of the state’s workers compensation program. The funds will be distributed as part of an ongoing initiative to improve workplace safety and modernize the way employers fund the state’s program.
Money would be used to renovate insurance program and stimulate economic growth
The money is currently tied to a three-stage package of proposals that aims to stimulate Ohio’s economy. One of the proposals associated with the package involves increasing the budget for the Bureau of Workers Compensation’s safety education program. This proposal would raise the budget from $5 million to $15 million. Another proposal involves converting the workers compensation program from a retrospective payment system to a prospective payment system. This will allow the funds associated with the dividends to be distributed as credit toward future premiums associated with workers compensation coverage.
Funds could be a major boon for Ohio businesses
State officials believe that the funds being returned will be a major benefit for businesses throughout the state. The funds are expected to be distributed among both public and private employers and will offer significant financial cushion when in regards to future workers compensation costs. Whether or not these funds will actually be distributed still remains to be seen as the Bureau of Workers Compensation has not yet approved the returns.