Court: BWC Ran Illegal Premiums System

May 16, 2014

The 8th Ohio District Court of Appeals has ruled the state Bureau of Workers' Compensation set up an illegal rating system that resulted in employers being overcharged nearly 860 million dollars over several years.

The ruling affects 270 thousand mostly small-business owners who were allegedly charged unfair premiums from July 2001 to June 2009. The court says the agency gave discounted premiums to companies that joined group insurance plans and charged companies not in the groups excessive rates to pay for the discounts. The court returned the case to a Cleveland judge to recalculate the exact amount owed to the firms.