Kathy Manderino, acting secretary of the Pennsylvania Departmentof Labor & Industry (DLI) announced on March 27 that statebusinesses will see a significant cut in workers’ compensationinsurance rates while benefit levels for injured workers will bemaintained. Workers’ comp insurance rates will drop 5.99%,effective April 1, reducing a key expense for many companies andsaving Pennsylvania businesses an estimated $140 million thisyear.

“A constant concern for business owners is reducing costs whilesupporting employees’ health and livelihood,” said Gov. Tom Wolf.“These rate reductions will go a long way toward ensuring [that]business owners can continue to create and support jobs that pay inPennsylvania.”

The rate reduction follows the Insurance Department’s approvalof the Pennsylvania Compensation Rating Bureau’s annual loss costfiling. These loss costs are used to determine the premiumsbusinesses pay for workers’ compensation insurance. The premiumsavings for an individual employer will vary based on theemployer’s risk classification, claims experience and otherfactors. Based on these factors, not every employer will see adecrease.

This is the fourth consecutive workers’ compensation insurancecut in as many years, and brings the cumulative savings to $550million for the past four years.

“Reducing this cost helps businesses in our state be morecompetitive, and frees up money to spend on other priorities, suchas hiring more workers,” said Acting Insurance Commissioner TeresaMiller.

Discount for businesses with workplace safetycommittees

The DLI notes that more than 10,530 state-certified workplacesafety committees have been established since March 1994,protecting nearly 1.4 million workers. Additionally, employers withcertified workplace safety committees have saved close to $524.3million in workers’ compensation premiums. These savings ininsurance costs are due solely to the 5% premium discount providedto businesses that have these committees, according to DLI.

“We are proud of the role our Bureau of Workers’ CompensationHealth & Safety division plays in the keeping our workerssafe,” Manderino said. “It’s clear that employer safety programsproduce tangible benefits and cost savings. Coupled with thereduction in premium rates, employers with safety committees get awin-win in savings and safety.”

Employers should contact their insurance company or agent formore information about how their workers’ compensation premiumswill be affected.

For more information on Pennsylvania's workers’ compensationprograms and help in making your workplace safer, visit “Workplace and CommunitySafety.”