Pennsylvania Insurance Commissioner Jessica Altman has approved a loss-cost filing, including a 12.95% reduction in loss-costs – a component in determining workers’ comp insurance rates paid by businesses. This reduction is expected to lead to lower premiums for many Pennsylvania businesses, according to a press release issued by the Pennsylvania Insurance Department.
This loss-cost filing was recommended by the Pennsylvania Compensation Rating Bureau, an independent bureau that makes filings to the Insurance Department on behalf of companies that write workers’ comp insurance in Pennsylvania.
The Insurance Department approved two mid-year loss cost filings in December 2018 following a legislative response to a state Supreme Court ruling concerning how disability claims are handled in workers’ comp cases, and a second filing correcting a loss-cost filing effective earlier in the year. This most recent approval is for an annual filing and distinct from the mid-year loss-cost filings.
“This significant cut continues several years of reductions, further helping business owners create good-paying jobs in Pennsylvania,” Altman said in the release. “Under Governor [Tom] Wolf’s leadership, my department is working to maintain a vibrant and competitive workers’ compensation insurance market, helping to keep costs down.”
More than 325 companies offer workers’ compensation insurance coverage in Pennsylvania. Altman noted 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.
Benefit levels have also been maintained for injured workers in Pennsylvania. Labor & Industry Secretary Jerry Oleksiak said in the release that certified workplace safety committees overseen by his department are key for both cost and safety.
“Making Pennsylvania’s workplaces safer requires a commitment from employers and employees alike, and workplace safety committees are a valuable tool in that effort,” Oleksiak said in the release. “It’s a win-win, as companies with a certified committee also receive a 5% discount on their workers’ comp insurance premiums.”
More than 12,232 state-certified workplace safety committees have been established since March 1994, protecting more than 1,553,981 workers. Additionally, employers with certified workplace safety committees have saved close to $733.2 million in workers’ compensation premiums. These savings in insurance costs are due solely to the 5% premium discount provided to businesses that have these committees, according to the release.
Source: Pennsylvania Insurance Department
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