Pennsylvania Insurance Commissioner Mike Consedine announced Thursday that a workers’ compensation rate reduction will go into effect next week for employers. The overall decrease of 4.01 percent is effective April 1, 2013.“We are very pleased with the rate reduction which is the second workers’ compensation decrease in a row,” Commissioner Consedine said. “The lower rate will benefit Pennsylvania employers with ongoing cost savings.”
The rate cut could result in a projected overall premium reduction of up to $110 million for Pennsylvania employers. This savings estimate is based on employer risk classifications and may vary according to claims experience, payroll, and other factors.
Not all employers will see a decrease. Employers should contact their insurance agent prior to their next renewal date to determine the impact of the rate cut on their premium.
“Pennsylvania employers are able to benefit from the outstanding job they are doing to provide safer workplaces,” Pennsylvania Labor & Industry Secretary Julia Hearthway said. “Establishing a state-certified workplace safety committee encourages a safe workplace and a productive workforce.
“More than 10,000 state-certified workplace safety committees have been established, protecting more than 1.3 million workers and saving employers close to $500 million in workers’ compensation premiums,” Hearthway said.
Workers’ compensation insurance provides for the cost of medical care and rehabilitation for injured workers, and lost wages and death benefits for the dependents of persons killed in work-related accidents. The Pennsylvania Compensation Rating Bureau advisory rates determine the premiums businesses pay for workers’ compensation insurance. The insurance department’s actuaries then confirm and approve the calculations submitted.
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