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Insurer’s Error Hikes W/C Costs in PA

A data error by an unnamed major insurer may have caused Pennsylvania businesses to pay higher rates for workers’ compensation insurance.
November 26, 2018

A data error by an unnamed major insurer may have caused Pennsylvania businesses to pay higher rates for workers’ compensation insurance. The error was discovered in mid-October and disclosed recently by the Pennsylvania Compensation Rating Bureau (PCRB). It led to an overstated average cost of providing workers' comp benefits by nearly 9 percent in the most recent filing.

Pennsylvania Insurance Commissioner Jessica Altman says, “As soon as we learned of this issue, we began working with the PCRB to encourage a prompt new filing with the department, so we could begin our review and approval process as soon as possible. We also immediately began investigating the issue and will take appropriate actions once the investigation has concluded.”

“NFIB believes that insurance companies unintentionally overcharging small businesses for workers’ comp coverage as a result of a data error should give that money back,” said Gordon Denlinger, state director of the National Federation of Independent Business in Pennsylvania.

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