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BWC proposes modest budget reductions and seeks statutory fixes on prosthetics, board duties and programs
Summary
BWC Director Stephanie McLeod told the House Public Insurance and Pensions Committee that the agency’s budget request is slightly lower for FY2026 and level for FY2027; the testimony proposed clearer authority to pay for replacement prosthetics on closed claims, statutory cleanups and described BWC efforts on safety grants and data analytics.
Stephanie McLeod, director of the Ohio Bureau of Workers' Compensation, told the House Public Insurance and Pensions Committee that BWC’s funding request for fiscal 2026 is 2% less than the 2025 budget and that the 2027 request is level with 2025. McLeod emphasized that BWC is funded by employer premium payments, not the General Revenue Fund, and described the agency as an insurance‑style program serving employers and injured workers across Ohio.
McLeod outlined several policy components included with the budget submission. On prosthetic care, she said the agency is proposing statutory language ‘‘to provide explicit authority to pay for these prosthesis in the future’’ when a workplace injury resulted in an amputation but the original claim had closed. On mental‑health claims, Representative Bridal asked whether BWC will expand PTSD coverage for first responders; McLeod said BWC administers PTSD benefits when accompanied by an associated physical injury but that standalone expansions for mental‑health claims are policy decisions for the General Assembly.
Committee members pressed BWC about managed care organizations (MCOs) and rising per‑claim payments despite a long‑term drop in claim counts. Members cited historical comparisons and asked whether the work should be returned in‑house. McLeod said MCOs provide medical management, vocational rehabilitation and dispute‑resolution services and argued the arrangements produce value; she added that the severity and cost per claim have changed since MCOs were first used.
McLeod also described program initiatives: the Better You, Better Ohio (BYBO) wellness program, firefighter cancer‑screening pilots, grants for extractor dryers and turnout gear, and consolidations of overlapping employer programs to reduce paperwork. She told the committee BWC is investing in data analytics to better target safety interventions and acknowledged the agency does not yet have definitive empirical answers for why total claim counts have declined.
This presentation was a first hearing on House Bill 81; no committee vote was taken.
