HARRISBURG, Pa. -- The Pennsylvania Insurance Department has approved a 5.7% decrease in overall workers' compensation costs. The cut will result in $160 million in savings for Pennsylvania employers, officials said.
"At a time when many are feeling a financial pinch and doing more with less, it is a very hopeful sign that the business community may now be able to pay less in workers' compensation insurance premiums," said Mike Consedine, insurance commissioner. "Our workers' compensation insurance system is sharply competitive, yet this marks the first time in three years that the Pennsylvania Compensation Rating Bureau has filed for a rate decrease."
Employers can expect a 5.7% rate decrease, on average, in 2012. However, some will see rates go up, some will see no change, and others will see rates go down beyond the 5.7%. This will vary according to type of business, as well as the employer's specific claims history, Consedine noted.
"Currently, there are 9,652 businesses enrolled in our certified workplace safety committee program, so they will receive an additional 5% discount," said Julia Hearthway, state secretary of labor & industry. More than 1.3 million people work at businesses with a certified safety committee."
Businesses with a certified safety committee have realized insurance premium reductions totaling $432.8 million since the program began, she added.
Those with insurance questions may call the department's toll-free hotline at 877 881 6388.
Published by The Business Journal, Youngstown, Ohio.