Another year and another workers’ compensation insurance rate cut. For the third year in a row under the Wolf administration, and the sixth overall, there will be a significant rate cut in workers’ compensation insurance, while the system maintains benefit levels for people injured on the job. As of April 1, workers’ compensation insurance rates will drop 6.21 percent, saving Pennsylvania businesses an estimated $150 million this year. Over the course of the entire six years, the reductions have saved the business community in the neighborhood of $800 million dollars. Cabinet secretaries for the Insurance Department and Labor and Industry made the announcement at the end of March.
Of course the risk classification, claims experience and other factors of any particular employer will help determine whether a premium decrease will be realized on an individual basis, there is little doubt that the business environment in Pennsylvania has been improved substantially by these rate reductions. The administration touted on its website that the latest rate cut is being made on the heels of a national study conducted by the Oregon Department of Consumer and Business Services, which showed that even before the rate cut, Pennsylvania had dropped to 26th from 17th in terms of the most costly states for workers’ compensation insurance coverage. This drastic drop was accomplished in only two years.
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