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.

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Rosalie Donlon

Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].