Pa. Okays 10% Comp Rate Cut

NU Online News Service, Feb. 14, 12:45 p.m. EST

Pennsylvania businesses on April 1 will get a 10.22 percent overall decrease in workers’ compensation insurance rates, their fourth reduction since 2003, it was announced.

Gov. Edward Rendell said in a statement Tuesday that the decrease will result in $250 million in savings for Pennsylvania employers. “I am pleased to announce that workers’ compensation insurers may be reducing their rates due to our approval of the Pennsylvania Compensation Rating Bureau’s recent filing to decrease costs an average of 10.22 percent overall,” said Mr. Rendell.

“Right now, Pennsylvania employers are benefiting from the excellent job they are doing to provide safe workplaces for their employees. Additionally, our workers’ compensation insurance system remains strong and competitive,” added the governor, who called his announcement “a win-win for business.” He noted that five years ago the state implemented the Work Safe PA initiative to supply businesses and employees with information and technical assistance to enhance workplace safety practices.

According to state officials, Pennsylvania’s Certified Workplace Safety Committee program has committees covering more than one million workers. Businesses with state-certified workplace safety committees receive a 5 percent discount on their workers’ comp premiums, in addition to the 10.22 percent decrease. With this most recent decrease, employers will have realized more than $750 million in savings in six years, the governor’s office said.

The overall 10.22 percent loss cost decrease is an average. Costs and savings will vary by type of business, as well as specific claims history. Some employers will see savings, others may not.