After years of being threatened with wholesale changes to Pennsylvania’s workers’ compensation law, driven largely by the Chamber of Commerce and a perception that insurance costs are out of control, it appears that a respite is warranted. In March, the Wolf administration announced a significant rate cut in workers’ compensation insurance, while maintaining benefit levels for injured workers. Therefore, the impetus for imposing draconian reform to the system would seem to no longer exist—if it ever did.
According to the governor’s office, workers’ compensation insurance rates were set to drop almost 6 percent, effective April 1. This will save Pennsylvania businesses an estimated $140 million, this year alone. This is the fourth workers’ compensation insurance cut in a row, saving businesses a total of $550 million during that timeframe. While not every employer will see a decrease, as the premium savings depend in part on an employer’s risk classification, claims experience and other factors, the overall trend makes Pennsylvania a much more favorable environment for business owners and insurers alike.
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