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Pa. announces workers’ compensation rate reduction

The Pennsylvania Insurance Department announced Friday that a workers’ compensation rate reduction will be effective today. The overall decrease is 4.01 percent.

The Pennsylvania Compensation Rating Bureau advisory rates determine the premiums businesses pay for workers’ compensation insurance. The PID’s actuaries must confirm and approve the calculations submitted.
“We are very pleased with the rate reduction which is the second workers’ compensation decrease in a row,” PID commissioner Mike Consedine said in a news release. “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, the department said.
Labor & Industry secretary Julia Hearthway said Pennsylvania employers are benefiting from providing safer workplaces, noting that establishing a state-certified workplace safety committee is one way to accomplish that goal.
“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.

Heather Stauffer