HARRISBURG, PA — Pennsylvania approved a 1.22 percent decrease in workers’ compensation insurance loss costs, a change expected to lower premiums for many employers while maintaining benefits for injured workers.
What This Means for You
- Businesses may see lower workers’ compensation insurance premiums
- The change applies to policies issued or renewed on or after April 1
- Worker benefits, including medical care and wage replacement, remain unchanged
The Pennsylvania Insurance Department approved the reduction after a filing by the Pennsylvania Compensation Rating Bureau, which sets baseline costs used by insurers to calculate premiums.
Loss costs are a key factor in determining how much employers pay for workers’ compensation coverage, which provides medical care, rehabilitation, lost wages, and death benefits for work-related injuries or fatalities.
How the Change Affects Employers
Officials said the decrease could reduce costs for businesses across the state, though individual impacts will vary based on factors such as industry classification, claims history, and insurer pricing.
About 375 insurance companies offer workers’ compensation coverage in Pennsylvania.
“This ensures businesses can access affordable coverage while maintaining the protections workers rely on if they are injured on the job,” Insurance Commissioner Michael Humphreys said.
System Stability and Savings
The updated loss costs took effect April 1 and apply to all new and renewed policies issued after that date.
State officials said lower insurance costs can allow businesses to reinvest savings into hiring, wages, equipment, and expansion.
Employers may also reduce costs by establishing Certified Workplace Safety Committees, which aim to improve safety and reduce workplace injuries.
Worker Protections Remain
Officials said the reduction does not affect the benefits available to injured workers.
“Workers’ compensation is a critical support for both Pennsylvania workers and employers,” Labor & Industry Secretary Nancy A. Walker said, noting the system is designed to provide stability and accountability.
Consumer Resources
Residents with questions or complaints about insurance coverage can visit https://www.pa.gov/consumer or call 1-866-722-6675 for assistance.
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