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[July 21, 2006]

Ohio Workers' Comp Bureau To Return $52 Million Collected Under Flawed Law

(BestWire Services Via Thomson Dialog NewsEdge)
The Ohio Bureau of Workers' Compensation will return $52 million collected from injured workers under a previous law that the state Supreme Court has since ruled unconstitutional.

About 7,900 workers, who were injured between Oct. 20, 1993, and June 27, 2001, will receive the reimbursement.

The Bureau of Workers' Compensation said it reserved more than $50 million earlier this year in anticipation of this action. "In fact, the bureau's financial condition continues to improve, as expenses are more than $300 million lower than last year's while the trade combined ratio has declined to 108," the agency said in a statement.

The injured workers filed a class-action suit contesting subrogation statutes enacted in 1993 and 1995 that allowed the workers' comp bureau to collect claims costs from a third party who caused the workers' compensation injury. These collections typically came from insurance companies and not directly from the third parties at fault.

The Ohio Supreme Court ruled that the subrogation laws were flawed because they allowed the agency and self-insuring employers to potentially be reimbursed more than what was paid in the affected claims.

BWC's Administrator Bill Mabe said "the appropriate action is to return all monies collected under what was clearly determined to be a flawed law."

(By David Dankwa, associate editor, BestWeek: David.Dankwa@ambest.com)

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