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What Does Cut in PA Workers’ Comp Rate For Employers Mean For Workers?

Experienced Bethlehem PA workers' compensation lawyer explains

Pennsylvania state officials recently approved a decrease in the amount employers will pay for workers' compensation insurance, a change which will not affect the amount of money injured workers receive in benefits, according to Bethlehem workers' compensation lawyer Anthony R. Vellner of Vellner Law, P.C.

Workplace Injury Attorney PA"This is a win-win situation for everyone," Vellner said recently. "Most employers will save money on how much they pay for workers' compensation insurance. And employees will continue to receive the same amount of money in workers' compensation benefits, which are set by law to protect people hurt on the job."

On average, employers will pay 6.21 percent less each month for workers' compensation insurance, according to a March 30th article published by the Allentown Morning Call. The rate cut was approved by Pennsylvania Insurance Commissioner Teresa Miller based on an annual study of workers' compensation costs.

How rate cut affects businesses

Overall, businesses in Pennsylvania will pay $150 million less over the next 12 months for workers' compensation insurance due to the state-approved rate cut, according to an April 4 article published by BusinessInsurance.com. Actual premium reductions will vary from business to business, but in general, it will be easier for employers to obtain robust workers' compensation coverage for their employees - which is great news for workers.

This is the sixth year in a row workers' compensation rates have been reduced by Pennsylvania state officials, who estimated that companies statewide saved $604 million due to the rate reductions, Allentown Morning Call reported.

"It is a great sign, it is just a little more relief, but very positive for business," said Tony Iannelli, president and CEO of the Greater Lehigh Valley Chamber of Commerce, in an interview with the Allentown Morning Call. "I think business looks at every cost, when you add them all up. It is a nice piece of relief and business will be very happy."

The cuts to insurance rates are partly due to a statewide push to promote workplace safety, according to state officials.

How workers' compensation works in Pennsylvania

Most businesses in Pennsylvania are required to obtain workers' compensation insurance.  If an employee becomes sick or injured on the job and cannot work, they are then eligible to receive workers' compensation benefits. Such benefits provide financial compensation for injured workers or their families for many items, including:

  • Lost wages
  • Medical bills
  • Death benefits

The amount of money injured workers receive varies based on a number of factors, including how much money the worker earned and sometimes the severity of the injury. However, just because someone was hurt on the job does not automatically guarantee that they will receive workers' comp benefits. Many applications for workers' compensation benefits are denied. That's why it's important talk with an attorney as soon as possible if you are applying for workers' compensation benefits. Contact Vellner Law, P.C. and find out how we can help you.

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