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Pennsylvania Employers – Workers Comp Premium Refunds Possible

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Pennsylvania Employers – Left In Limbo On Workers Comp Premiums

Pennsylvania employers likely experienced overcharges on recent workers comp policies and audits.

pennsylvania employers state flag
Wikimedia Commons – Simtropolitan

A previous article was published on who is to blame when the rating bureaus make a mistake.  Pennsylvania recently experienced system-wide workers comp premium overcharges due to a carrier misreporting their data to the PCRB (Pennsylvania Compensation Rating Bureau).

When a very large carrier in a certain state does not report the proper insurance rating data, then all employers data incurs a ripple-effect of inaccuracy.  In fact, the overcharge was estimated at $250,000,000. 

The main question in 2018 was – Did the PCRB have the proper data safeguards in place to catch when a carrier accidentally misreports their data?  My main question was – will Pennsylvania employers receive their proper premium refunds?   The premium overcharges were beyond obvious.

If an employer’s workers compensation experience rating information is incorrect, then the company did not pay the correct premium.

My question for 2019 was – Did the workers comp carriers refund the overcharges to Pennsylvania employers?  My question was answered in two parts.

Two Questions For Pennsylvania Insureds

Two questions that I thought should be asked by Pennsylvania policyholders are:

  1. Did the proper insurance authorities order an immediate refund?  No, in fact, the Insurance Commissioner Jessica Altman said that “carriers should do the right thing.”  I have not seen to date where any carrier had produced a press release on refunds to employers.
  2. What did any carriers do to correct the mistake?   SWIF – The State Workers Compensation Insurance Fund published a press release of sorts by writing a letter to the Commissioner Altman adjusting the Loss Cost Multipliers to lessen the affect of the overcharges.    One has to congratulate SWIF on their proactive stance.  However, the LCM’s affect the future – what about the overcharges that Pennsylvania employers incurred in their past policies?

Should Pennsylvania employers contact their carriers and agents?  Yes, but make sure that you have your “ducks in a row.”  Never contact your carrier with a grievance on overcharges without the proper numbers down on paper.   That type of contact has backfired on many unprepared employers in the past.

Pennsylvania employers – feel free to contact me with questions.

 

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

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