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Government and Politics


Judge says worker's comp must re-pay nearly a billion dollars
More than 270,000 employers are owed money
Story by BRIAN BULL


 
In The Region:
A Cuyahoga County judge has ruled that Ohio's Bureau of Workers Compensation must pay nearly a billion dollars in restitution to more than 270,000 employers. For Ohio Public Radion, WCPN's Brian Bull reports.
Judge says Worker's Comp has to re-pay millions

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Judge Richard McMonagle ruled in a class-action lawsuit last year that the workers comp bureau grossly overcharged premiums to companies that were not members of employer groups between 2001 and 2009.

After hearing testimony on how much the companies were owed, McMonagle settled on $859 million. 

The plaintiff’s lawyers had asked for $1.2 billion. 

Attorney Stuart Garson helped represent the companies. He told Ideastream last month that at the height of the workers comp program, discounts for employer group members were as high as 95 percent.

“Those companies that got these incredible discounts were not covering the risk and cost they brought to the system. Therefore, for everybody who was excessively undercharged, somebody had to pay that difference, and that difference was being paid by the non-group.” 

The state may appeal the decision. Paying the restitution would require it to either raise its insurance premium rates or take money out of its own reserves.
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