The actual rate that appears on the employer's payroll report and is used to calculate workers compensation premiums is called a blended rate. The blended rate consists of several assessments added to the premium rate.
The various assessments contribute to the administrative costs, or the operating costs of BWC and the Industrial Commission of Ohio, and to fund the Disabled Workers Relief Fund (DWRF).
DWRF is a supplemental benefit to those injured workers whose regular PTD benefits have not kept pace with inflation. The DWRF fund is only utilized for those injured workers who have been declared permanently and totally disabled (PTD).
There are two separate DWRF assessments. The first DWRF 1 is an assessment that funds injuries that occurred prior to Jan. 1, 1987. DWRF 2 assessment that covers injuries occurring on or after Jan. 1, 1987. Currently, the BWC is not collecting for these two assessments but reserves the ability to assess for these funds at a later time.
Included in the base rate is an assessment an employer pays which is used to finance BWC's Division of Safety & Hygiene. The mission of the Division of Safety & Hygiene is to educate employers to help prevent industrial accidents and occupational diseases.
The remaining premium is used to pay compensation and medical benefits for injured workers' claims that occur during the policy year.