The Wolf Administration recently announced that Pennsylvania businesses will see another decrease in workers compensation insurance rates, while benefit levels for injured workers will be maintained.
Workers comp insurance rates will drop 0.90 percent, effective April 1, reducing a key expense for many companies and saving Pennsylvania businesses an estimated $20 million this year.
“Maintaining fair benefits for workers injured on the job is vital for Pennsylvania families’ financial well-being and peace of mind,” said Governor Tom Wolf. “Sticking to this responsibility, while still reducing rates on a key cost, helps business owners continue to create and support jobs that pay in Pennsylvania.”
The rate reduction follows the Insurance Department’s approval of the Pennsylvania Compensation Rating Bureau’s annual loss cost filing. These loss costs are used to determine the premiums businesses pay for workers comp insurance. The premium savings for an individual employer will vary based on the employer’s risk classification, claims experience, and other factors.
This is the fifth consecutive workers comp insurance cut in as many years, and brings the cumulative savings to $570 million for the past five years. Workers compensation insurance covers the cost of medical care and rehabilitation for injured workers, lost wages, and death benefits for the dependents of those killed in work-related accidents.
Approximately 325 companies are writing workers comp insurance currently in Pennsylvania.
More than 11,220 state-certified workplace safety committees have been established since March 1994, protecting more than 1,463,000 workers.
Additionally, employers with certified workplace safety committees have saved close to $604.2 million in workers comp premiums. These savings in insurance costs are due solely to the 5 percent premium discount provided to businesses that have these committees.
Author Kori Shafer-Stack, Editor, Amaxx Risk Solutions, Inc. is an expert in post-injury response procedures and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. www.reduceyourworkerscomp.com. Contact: kstack@reduceyourworkerscomp.com.
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