Shapiro Administration Approves Workers’ Compensation Filings That Help Cut Costs for Employers While Protecting Injured Workers | Insurance Department | Commonwealth of[...]

Harrisburg, PA - The Pennsylvania Insurance Department (PID) and the Pennsylvania Department of Labor & Industry (L&I) announced that PID approved a decrease of 1.22% in "loss costs" for workers' compensation insurance. This change is expected to lower costs for many businesses across Pennsylvania and help employers save money and reinvest in jobs, wages, and growth.

Loss costs are used to set workers' compensation insurance premiums. Because these costs directly influence what businesses pay for coverage, the decreased rate will likely reduce premiums for many Pennsylvania employers while maintaining strong protections for workers.

"A strong and competitive workers' compensation market benefits both employees and employers," said Pennsylvania Insurance Commissioner Michael Humphreys. "This ensures businesses can access affordable coverage while maintaining the protections workers rely on if they are injured on the job. We remain committed to supporting a stable and effective system for all Pennsylvanians."

This loss cost revision was filed by the Pennsylvania Compensation Rating Bureau (PCRB), an independent bureau that makes filings to PID on behalf of companies that write workers' compensation insurance in Pennsylvania. Worker's 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.

This year's loss-cost filing became effective April 1. New or renewed policies issued on or after that date will reflect the updated loss costs.

Approximately 375 insurance companies offer workers' compensation insurance coverage in Pennsylvania. The impact of the loss cost filing on an individual employer will vary based on factors such as employer classification claims experience, and the insurance company with which they are insured.

Thousands of Pennsylvania employers have saved on insurance premiums by developing a Certified Workplace Safety Committee. Businesses that reduce workers' compensation costs may reinvest those savings into their operations, including hiring employees, upgrading equipment, and expanding services.

"Workers' compensation is a critical support for both Pennsylvania workers and employers," said Pennsylvania Department of Labor & Industry Secretary Nancy A. Walker. "This decrease helps reduce costs for businesses while ensuring injured workers continue to have access to the medical care, wage-loss benefits, and protections they need. It reflects the strength of a system that works best when it delivers stability, fairness, and accountability for everyone."

More information on Pennsylvania insurance products can be found on the PID website.

Additional information on the Bureau of Workers' Compensation and workplace safety programs is available on the L&I website.

Pennsylvanians with questions about their insurance or who wish to file a complaint can visit pa.gov/consumer or call 1-866-PA-COMPLAINT (1-866-722-6675).