Businesses challenge Ohio Workers' Compensation premiums
August 21, 2012
Ohio: This week, the trial between a number of Ohio business owners and the state's Bureau of Workers' Compensation (BWC) began in the Cuyahoga County Court of Common Pleas courtroom of Judge Richard J. McMonagle. The businesses are suing the BWC for what they consider excessive premiums charged between 2001 and 2008. During that time, the BWC encouraged businesses to group together their insurance plans, and offered reduced premiums to those who did. Businesses not involved in groups claimed that they were forced to pay exorbitant premiums to offer discounts to others. The companies who brought suit claim that they are owed almost $1.3 billion.[1]
An attorney for the BWC contends that the bureau had every right to charge varying premiums, and that businesses benefited from this system. An attorney for the plaintiffs claims that if the BWC is forced to pay, it will have no effect on its operations, due to $7 billion in excess funds.[1]
Tellingly, when the suit was filed in 2009, Judge McMonagle ordered the BWC to change the way its fees were collected. The bureau complied with the order, and the plaintiffs said they have no complaints with the current method.[1]
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