Workers’ comp fund says some insurers are cheating – and it’s not happy

Workers’ comp fund says some insurers are cheating – and it’s not happy

Workers’ comp fund says some insurers are cheating – and it’s not happy Pennsylvania’s State Workers’ Insurance Fund (SWIF) is asking state legislature to give it more teeth in dealing with insurers who do not fulfil their obligations with the agency.

SWIF was designed to allow small businesses to provide their employees with workers’ insurance, which state law requires.

Under the current system, insurers are charged based on their payroll estimates, which can be underestimated so employers can get lower premiums. Interim director Andy Thomas said it is easy for companies owing SWIF back debt to simply walk away from the obligation.

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“They have the ability to apply for a new federal employee insurance number, they maybe change the name of the company, they apply to SWIF for another premium…we are then required to write them another policy,” he said in a News Works report.

Thomas did not provide specific recommendations as to how the agency can deal with rogue employers, but he said SWIF needs “more teeth in requiring insurers to address the debt they have with the state.”


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3 Comments
  • 2/17/2017 11:29:32 AM
    I think another thing that is happening is some insurance companies reserve their claims high to move up experience mods.
    Post a reply
  • 2/17/2017 12:02:50 PM
    Perhaps they should review how Colorado addresses this. I've been in the WC industry here for over 20 years, and that problem was resolved here many years ago!
    Post a reply
  • 2/17/2017 12:05:17 PM
    That's a common perception, based on no facts whatsoever. There are standards for setting reserves based on injury severity, age, wages and other factors, and insurers would be penalized for not adhering to them.
    Post a reply