Pennsylvania Governor Tom Wolf has announced that businesses in the state will see another decrease in workers' compensation insurance rates, while benefit levels for injured workers will be maintained.
The Wolf administration said workers' compensation insurance rates will drop 0.9 per cent, effective April 1. The move is seen to reduce a key expense for many companies, saving an estimated $20 million this year.
Workers' compensation insurance covers the cost of medical care and rehabilitation for injured workers, lost wages, and death benefits for the dependents of those killed in work-related accidents.
"Maintaining fair benefits for workers injured on the job is vital for Pennsylvania families' financial well-being and peace of mind," Wolf said, "Sticking to this responsibility, while still reducing rates on a key cost, helps business owners continue to create and support jobs that pay in Pennsylvania."
The new rate reduction, which is the fifth consecutive workers’ compensation insurance cut in many years, will bring the cumulative savings to $570 million for the past five years.
"Reducing costs also frees up money for businesses to spend resources on innovation and creating good-paying jobs for Pennsylvanians,” said Pennsylvania Insurance Commissioner Teresa Miller.
Miller said 325 companies are writing workers' compensation insurance in the state.
The state government urged employers to contact their insurance company to know how their workers' compensation premiums will be affected.
