Ohio House Approves Budgets for Bureau of Workers' Compensation and Industrial Commission

The Ohio House of Representatives today approved both House Bill 80 and House Bill 81- the biennial budgets for the Industrial Commission (IC) and the Ohio Bureau of Workers' Compensation (BWC) for fiscal years 2026 and 2027.

"I'm pleased to announce that both budgets were passed today for two agencies that complete important work for our State," said Representative Peterson (R-Sabina), Chairman of the Public Insurance and Pensions Committee. "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, and the BWC most recently announced a 6 percent rate reduction for private employers, following a 7 percent rate cut for private employers last year! These Budgets represent a continuation of the great work happening at the IC and BWC."

OHIO'S IC BUDGET - House Bill 80

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 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.

OHIO'S BWC BUDGET - House Bill 81

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 81 includes an update that will 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 five-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 81 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'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.

House Bill 80 and House Bill 81 will now go to Senate for consideration.