Pennsylvania’s State Workers Insurance Fund (SWIF), the largest writer of workers’ comp insurance in Pennsylvania, has filed a plan to retroactively correct charges to employers for their workers’ compensation policies written between April 1, 2018, and December 31, 2018.
The informational filings were submitted due to the Insurance Department’s recent approval of a mid-year loss cost revision filing from the Pennsylvania Compensation Rating Bureau (PCRB), which modifies the PCRB’s filing that took effect April 1, 2018, and was used to determine workers’ comp insurance rates for Pennsylvania businesses. The PCRB is an independent bureau that makes filings to the Insurance Department on behalf of the nearly 325 companies that write workers’ comp insurance in Pennsylvania.
Upon approving the PCRB’s mid-year loss cost revision filing on December 14, Altman urged insurers to take action to reimburse any businesses that were overcharged because of this earlier PCRB filing. Reimbursement amounts will vary based on job classifications and claims experience.
“Because information in the earlier PCRB filing was used in setting rates in place since April 1, 2018, it is possible some businesses paid higher rates than they should have since that time,” Altman said in a press release issued by the Pennsylvania Insurance Department. “Therefore, I have urged all workers’ comp insurers to determine as quickly as possible whether this is the case for any businesses they insure and to reimburse any businesses which have overpaid as a result of the filing that was effective April 1, 2018.”
Prior to SWIF’s announcement, four insurance groups, including 16 individual insurers, had filed plans with the Insurance Department to retroactively correct charges to their policyholders due to the incorrect April 1, 2018, loss cost filing. These insurers combined write about $98 million in workers’ comp insurance in Pennsylvania. SWIF writes approximately $175 million in coverage.
“Workers’ compensation insurance is vital to protect workers hurt on the job and make sure they get the medical care they need,” Altman said in the release. “At the same time, this is a cost for businesses, and that cost must be calculated with accurate information.”
Insurers who have submitted workers’ comp informational filings to address any overcharges for policies written between April 1, 2018, and December 31, 2018, can be found on the Business Insurance page at the Pennsylvania Insurance Department website.
Source: Pennsylvania Insurance Department
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