The Pennsylvania Departments of Insurance and Labor & Industry on Monday announced a 5.15 percent workers’ compensation rate reduction, effective April 1. The officials said the reduction would save millions of dollars for many Pennsylvania employers.
The rate reduction is due to 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’ compensation insurance.
The premium savings for an individual employer will vary based on the employer’s risk classification, claims experience and other factors. Not all employers will see a decrease.
“As a result of this action, we estimate that Pennsylvania employers will experience annual savings in workers’ compensation insurance costs of approximately $140 million,” Pennsylvania Insurance Commissioner Michael Consedine said.
“This is the third workers’ compensation insurance decrease since 2012 and we see this as a very positive trend. Total savings for the past three years is approximately $410 million.”
“We have spent the past several weeks celebrating the safe workplaces of Pennsylvania employers by presenting the Governor’s Award for Safety Excellence to 10 employers across the state,” Pennsylvania Labor & Industry Secretary Julia Hearthway said. “It’s clear that employer safety programs produce tangible benefits and cost savings.”
Officials said more than 10,530 state-certified workplace safety committees have been established since March 1994, protecting more than 1,396,306 workers. Additionally, employers with certified workplace safety committees have saved close to $524.3 million in workers’ compensation premiums. These savings in insurance costs are due solely to the five-percent premium discount provided to businesses that have these committees.
Source: The Pennsylvania Departments of Insurance and Labor & Industry