HARRISBURG, Pa., March 31, 2014 /PRNewswire-USNewswire/ -- The Pennsylvania Departments of Insurance and Labor & Industry today announced a 5.15 percent workers' compensation rate reduction, effective April 1, saving millions of dollars for many Pennsylvania employers.
"As a result of this action, we estimate that Pennsylvania employers will experience annual savings in workers' compensation insurance costs of approximately $140 million," Commissioner Consedine said. "This is the third workers' compensation insurance decrease since 2012 and we see this as a very positive trend. Total savings for the past three years is approximately $410 million."
The rate reduction is due to 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. Not all employers will see a decrease.
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.
"We have spent the past several weeks celebrating the safe workplaces of Pennsylvania employers by presenting the Governor's Award for Safety Excellence to ten employers across the state," Labor & Industry Secretary Julia Hearthway said. "It's clear that employer safety programs produce tangible benefits and cost savings."
More than 10,530 state-certified workplace safety committees have been established since March 1994, protecting more than 1,396,306 workers. Additionally, employers with certified workplace safety committees have saved close to $524.3 million in workers' compensation premiums. These savings in insurance costs are due solely to the five-percent premium discount provided to businesses that have these committees.
Employers should contact their insurance company or agent for more information about how their workers' compensation premiums will be affected.
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."
Rosanne Placey or Melissa Fox, Insurance; 717-787-3289
Sara Goulet, L&I; 717-787-7530
SOURCE Pennsylvania Department of Insurance; Pennsylvania Department of Labor & Industry