Representative Peterson Announces Passage of Ohio BWC, IC Budgets Through Committee

State Representative Bob Peterson (R-Sabina), Chair of the Ohio House Public Insurance and Pensions Committee, today announced that the biennial budgets for both the Ohio Bureau of Workers’ Compensation (BWC) and the Industrial Commission (IC) for Fiscal Years 2026 and 2027 were reported out of committee. 

OHIO’S BWC BUDGET – House Bill 80 

The Ohio BWC is the exclusive provider of workers’ compensation insurance in Ohio, serving 258,000 public and private employers. Among other provisions, House Bill 80 includes an update that would allow the BWC to purchase, repair and replace prosthetic devices if those devices were required as a result of workplace injury or disease even after the life of the claim has expired. Under current law, the BWC is bound by a 5-year timeframe for repairing and replacing prosthetic devices, but the life of a prosthetic device is generally far longer than the life of a BWC claim as set by law.  Currently, many individuals whose prosthetic devices are old or damaged are unable to get them repaired with worker’s compensation benefits, even though the original injury was covered by the claim.

House Bill 80 also includes changes to the Prison Industries Enhancement Certification Program and how the process works for incarcerated individuals who are injured through prison employment. Additionally, the bill makes it easier for employers that utilize the services of a Professional Employer Organization to return to the state insurance fund and renames the BWC’s ombudsperson system to the Workers' Compensation Customer Advocacy Office.

“The BWC most recently announced a 6 percent rate reduction for private employers, following a 7 percent rate cut for private employers last year,” said Rep. Peterson. “This Budget represents a continuation of the great work happening at the BWC to ensure workplace safety while helping private employers to save more of their earnings.”

The BWC’s budget is not funded through the General Revenue Fund but through premium payments made by employers, with a small portion supported by federal grants. 

OHIO’S IC BUDGET – House Bill 81

The State of Ohio charges the IC with the responsibility of resolving disputes over the payment of compensation and medical benefits in claims filed for work-related injuries and occupational diseases. According to committee testimony, as part of the next funding cycle, the IC will continue to prioritize using technology to improve the experience for injured workers by making the electronic hearing process more user-friendly and exploring additional options for remote hearings – saving time and money. The IC conducts hearings at its offices throughout Ohio for the convenience of injured workers and employers. 

“The Industrial Commission plays an important role in facilitating an impartial and timely process for employers and injured workers who are going through the workers’ compensation claims process,” said Rep. Peterson. “I am pleased with the efficiency of the committee as they vetted the IC’s budget bill, which is an overall reduction from last year’s IC budget while still maintaining the same level of service for injured workers.”

The commission is funded by an Administrative Cost Fund surcharge applied to the workers’ compensation insurance base premium coverage rate and is a non-GRF agency.  

House Bill 80 and House Bill 81 will now go to the House Finance Committee for further review.