The state will be slashing back these insurance rates by 5.99 percent, beginning with the start of April.
Pennsylvania has announced that it will be reducing its rates for workers compensation by 5.99 percent, and that this new level will become effective as of April 1, in a decision that is hoped to provide businesses with a considerable savings.
In fact, the Wolf administration has said that the savings to businesses has been estimated at $140 million.
The governor of Pennsylvania, Tom Wolf, explained that “These rate reductions will go a long way towards ensuring business owners can continue to create and support jobs that pay in Pennsylvania.” Businesses will not need to wait very long in order to start to see the difference in their workers compensation insurance rates, as they are set to become effective as of tomorrow. This change in the rates represents an ongoing trend in terms of the reduction of the cost of this coverage for businesses.
In fact, this is the fourth year in a row in which Pennsylvania workers compensation rates have fallen.
Data from the Pennsylvania Insurance Department has calculated the savings that have been accumulated by businesses, and has said that it estimates that figure to be about $550 million. It is clear that, over time, this reduction in costs to businesses is builds up and as the rates continue to fall, that savings will only continue its increases.
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It is important to point out that the reduction in these insurance rates will not make any difference to the benefit levels that will be available to workers who are injured on the job. While the rates may be falling, the level of coverage that is being provided has been set to be maintained.
Due to the method of calculation for workers compensation rates, the department has recommended that “Employers should contact their insurance company or agent for more information about how their workers’ compensation premiums will be affected.” This will allow those businesses to be able to see exactly how the change in rates will impact their own expenses within their own unique circumstances.