HARRISBURG, Pa., Feb. 29, 2016 /PRNewswire-USNewswire/ -- The Wolf Administration today announced that Pennsylvania businesses will see another decrease in workers' compensation insurance rates, while benefit levels for injured workers will be maintained. Workers' comp insurance rates will drop 0.90 percent, effective April 1, reducing a key expense for many companies and saving Pennsylvania businesses an estimated $20 million this year.
"Maintaining fair benefits for workers injured on the job is vital for Pennsylvania families' financial well-being and peace of mind," said Governor Tom Wolf. "Sticking to this responsibility, while still reducing rates on a key cost, helps business owners continue to create and support jobs that pay in Pennsylvania."
The rate reduction follows the Insurance Department's approval of the Pennsylvania Compensation Rating Bureau's annual loss cost filing. These loss costs are used to determine the premiums businesses pay for workers' compensation insurance. The premium savings for an individual employer will vary based on the employer's risk classification, claims experience, and other factors.
This is the fifth consecutive workers' compensation insurance cut in as many years, and brings the cumulative savings to $570 million for the past five years. Workers' compensation insurance covers the cost of medical care and rehabilitation for injured workers, lost wages, and death benefits for the dependents of those killed in work-related accidents.
"My department is committed to supporting a vibrant and competitive market in Pennsylvania, as competition leads to more options for consumers and lower prices," said Insurance Commissioner Teresa Miller. "Reducing costs also frees up money for businesses to spend resources on innovation and creating good-paying jobs for Pennsylvanians."
Commissioner Miller said approximately 325 companies are writing workers' comp insurance currently in Pennsylvania.
More than 11,220 state-certified workplace safety committees have been established since March 1994, protecting more than 1,463,000 workers. Additionally, employers with certified workplace safety committees have saved close to $604.2 million in workers' compensation premiums. These savings in insurance costs are due solely to the 5 percent premium discount provided to businesses that have these committees.
"The Bureau of Workers' Compensation Health & Safety Division provides employers with the most up-to-date and relevant safety information and benefits possible for employees," said Labor & Industry Secretary Kathy Manderino. "Having a certified workplace safety committee ensures safety knowledge and practices are disseminated while providing another way for employers to save money on workers' compensation insurance costs."
Employers should contact their insurance company or agent for more information about how their workers' compensation premiums will be affected. Not all employers will see a decrease.
More information on Pennsylvania insurance products is available at www.insurance.pa.gov.
For more information on making Pennsylvania's workplaces safer, visit www.dli.state.pa.us, "Workplace and Community Safety."
MEDIA CONTACT: Ron Ruman. Insurance Department, - 717-787-3289
Sara Goulet, Department of Labor and Industry, - 717-787-7530
SOURCE Pennsylvania Insurance Department; Pennsylvania Department of Labor & Industry