Pennsylvania’s governor’s office released a statement this week announcing a 6.21 percent decrease in workers’ compensation rates. The decrease is expected to save businesses in the state about $150 million.
The decrease, according to the statement, will help businesses “create jobs that pay in Pennsylvania and at the same time, maintain fair benefits for workers injured on the job.”
There are a couple of reasons why the decrease happened. The first is that the Pennsylvania Compensation Rating Bureau gave a lower loss-cost filing due to fewer workers’ compensation claims. The cost savings also came from bill HB 1846.
The bill was passed in 2014 had several points that helped lower the cost. The first is that it capped the reimbursement of drugs that are repackaged at 110 percent of the average wholesale price. The second is that Schedule II controlled substances could not be dispensed by physicians. Finally, it keeps physicians from prescribing more than a month’s supply of other types of medications.
The cost of workers’ compensation insurance for employers can be a reason why some businesses do not have the workers’ comp coverage they are supposed to have. This decrease in the rates could mean more employees will be covered by workers’ compensation if they are injured while at work.
As more employers emphasize safety in the workplace, hopefully the number of workers’ compensation claims will continue to drop. For those that are injured while at work, workers’ compensation helps provide the medical care and wage replacement needed until a worker can return to his or her job. If you have had a workers’ compensation claim denied, an experienced attorney can help you file an appeal.
Source: businessinsurance.com, “Pennsylvania cuts workers comp rate,” Joyce Famakinwa, April 04, 2017