On May 2nd, Ohio Governor John Kasich announced his plan to return $1 billion in insurance premiums to 210,000 public and private employers in amounts ranging from $5 to millions of dollars. These rebates will come from the Bureau of Workers’ Compensation’s more than $8 billion in net assets, which, according to Governor Kasich, were generated by strong investment management practices.
“I would call this one of the most significant economic stimulus measures that we have seen,” Kasich said. “This is essentially a billion dollar tax cut for our medium and small businesses.”
This is not the first time a rebate of these proportions has been proposed. From 1996 to 2005, private employers received rebates of $6.6 billion, and $1.4 billion for public employers. The last dividend was in 2004, which provided a 20 percent cut in premiums, and the largest dividend reduced premiums by $1.3 billion.
The goal of the rebate is to create a jobs-friendly climate, building on the more than 115,000 new jobs created over the last few years. Kasich hopes his plan to return a billion dollars to Ohio businesses will serve to continue this growth.
The rebates, if approved by the bureau’s board of directors, could arrive as soon as June.