Pennsylvania Employers' Workers' Comp Premiums Down
Workers compensation premiums paid by companies across the state will be down an average of 5.66 percent from last year, the first time the rates have decreased in two years.
Pennsylvania's Executive Deputy Insurance Commissioner Randy Rohrbaugh said this is good news for state companies.
"They will have hopefully the $160 million to really put back into their business for business expansion and hiring employees, so this is a very positive thing for our employers," Rohrbaugh said.
Rohrbaugh explained that Workers' Compensation Rating Bureau provides the state its actuarial loss data, and the 2011 numbers showed that a premium decrease was in order for 2012. The data was confirmed by the state. The rate decrease will take effect beginning April 1.
Rohrbaugh said the 5.6 percent decrease is an average, so some employers will experience a decrease in rates, but others won't.
"There are two main driving factors. It's the indemnity costs, which is the loss of salary, and the medical costs, which are the costs which come from repairing broken bones and injuries," Rohrbaugh said.
Safer workplaces and fewer workplace injuries all contribute to the decrease according to Rorhbaugh.