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Workers' compensation costs in Pennsylvania are decreasing. PHOTO/GETTY IMAGES
State workers’ comp costs continue to decrease
Ed Gruver//February 1, 2024//
Pennsylvania‘s workers’ compensation expenses continue their decades-long decline.
The Pennsylvania Insurance Commissioner recently approved the Pennsylvania Compensation Rating Bureau‘s (PCRB) annual Loss Cost Filing, continuing a trend of decreasing workers compensation insurance costs.
The filing was approved on Jan. 23 and takes effect April 1.
“While the economic impacts from the pandemic have caused some disruption, the Pennsylvania workers compensation system has fared well and remains strong,” Brent Otto, PCRB’s chief actuary and vice president, Actuarial Services, said in a statement.
PCRB’s filing indicated an overall change of -7.88%, more than doubling last year’s decrease of 3.33%. The decrease in claim frequency is driving the downward trend, the 2023 figure of -6.1% following the -6.2% in 2022. Fewer large claims are another factor contributing to the decrease.
Since 2015, the average payment per claim has dropped from $1,500 to $1,100. Prescription claims have declined 60% since 2015, and opioid prescriptions are down 75% over the same span.
The PCRB’s Loss Cost Filing included its Experience Rating Plan updated, which goes into effect on April 1.
In related news, the PCRB and Delaware Compensation Rating Bureau (DCRB) will host the inaugural Workers Compensation Symposium (WCS): Evolving with Data and Artificial Intelligence on April 18 in Philadelphia.
“This symposium is not just another industry event,” said PCRB and DCRB President and CEO Bill Taylor. “It’s your ticket to staying ahead in a world where data isn’t just information – it’s a game-changer.”
The event is scheduled to be held at Convene at City View in Center City. The WCS will feature an update on the state of workers’ compensation while also exploring data analytics and AI and their effect on the workers’ compensation industry.
