Late last year, the Ohio Bureau of Workers' Compensation (BWC) announced plans for an adjustment to its group rating program which would have resulted in a drastic reduction in the maximum savings available to group-rated employers for the 2027 rating year. The BWC had suggested decreasing the maximum savings from 53% to approximately 32% citing concerns that premiums paid by group-rated employers did not align with their expected losses.

In response, OADA, Sedgwick, and a number of trade associations formed a coalition, sought answers, and worked with the BWC to ensure any changes to group rating discounts were both necessary and reasonable. As a result, the BWC announced a much more modest reduction to the maximum available group rating discount from 53% to 50% for the July 1, 2027 rate year.

We appreciate the BWC's cooperation and commitment to continued engagement on this topic.

As part of this effort, the coalition engaged an independent actuary to re-analyze the BWC's methodology and conclusions. OADA was a key participant in this initiative, helping to ensure that the review process was thorough and grounded in objective data. The actuarial analysis provided additional clarity into how group rating discounts are calculated and the variables that influence long-term rate projections. This approach highlights OADA's commitment to advocating for its members with a strong foundation of insight and data.

Sedgwick was also heavily involved throughout the process, contributing valuable expertise and guidance. By working closely with OADA and the coalition, Sedgwick helped interpret complex actuarial findings and translated them into practical implications for employers. Their involvement strengthened the coalition's ability to engage productively and meaningfully with the BWC.

By maintaining open communication with the BWC, the coalition was able to reduce the impact to group-rated employers' premiums for the 2027 rate year, while recognizing the BWC's concerns related to both competitive employer pricing and the health of the system. Furthermore, the BWC has committed to further engagement with the business community to ensure any future changes to discounts or group rating programs are vetted before implementation.

For OADA members, the adjustment is not expected to significantly impact the overall value of group rating programs. Group rating along with group retrospective rating programs continue to offer substantial savings opportunities, along with services that support workplace safety and effective claims management.

Sedgwick is finalizing group invitations for the July 1, 2027 rate year and the BWC changes will be reflected in the savings shown on group invitations. 

OADA remains committed to monitoring future developments and advocating on behalf of Ohio auto dealers. Its leadership in this coalition effort, supported by Sedgwick's expertise, demonstrates a continued focus on collaboration, informed decision-making, and strong member representation in an evolving workers' compensation landscape.