IMPACTING LIVES, PRODUCTIVITY, AND PROFITABILITY WHILE
TAKING THE FRUSTRATION OUT OF WORKERS' COMPENSATION!
The Pennsylvania Compensation Rating Bureau (PCRB) introduced major changes to workers' compensation Experience Modifier calculation, which will take effect from April 1, 2024. These changes are significant for employers, marking the first substantial update since 2004.
Impacting the 60,000+ businesses with experience mods in Pennsylvania, some credit modifiers will transition to surcharge modifiers under the new system. In short, best-performing businesses can anticipate lower modifiers, while poorer performers will see higher modifiers. Changes will amplify the financial implications of employee injuries on mods.
Experience Modifiers use historical employee injury data to forecast future risks and adjust workers' compensation premiums accordingly. Until now, the modifier calculation included all employee injury costs up to $42,500, with annual modifier fluctuations capped at 25%. However, the PCRB's new plan aims to reflect each business's loss ratio more accurately—the balance between injury costs and paid premiums.
Key changes include:
-
Lowering the premium threshold for modifier eligibility from $10,000 to $5,000 premium makes 21,000+ additional businesses eligible for experience rating.
-
The injury cap will now be variable, tied to an employer's size (expected losses), ranging from $10,000 to $300,000 caps instead of the flat $42,500. This ensures a modifier that better corresponds to an employer's actual injury history.
-
Effective April 1, 2026, the PCRB will revise swing limits by eliminating the cap on decreases while setting a new +40% cap on increases alongside a unique maximum modification formula for each business. This means a business's modifier can only rise by 40% or up to its calculated maximum, whichever is lower.
It's essential for businesses to stay informed and consult with a Certified WorkComp Advisor to understand these changes and strive for the lowest possible mod. This proactive approach is critical to managing Pennsylvania's new landscape of workers’ compensation costs.
​
Click here to Download the Detailed Summary of Changes
​
WANT TO KNOW THE IMPACT ON YOUR EXPERIENCE MODIFIER?
Click here to schedule a Virtual Meeting to discuss!
​
Watch the Webinar!
BLOG
FREE RESOURCES you can download
​
Answers to Get Before you Hire a Broker/Agent
Work Comp Fraud Red Flag Checklist
How you benefit from a return to Work Program
10 Costly Return to Work Mistakes Employers Make
Facility Safety Inspection Checklist
Risk Management 365: Total Risk Management for your Business
How Electronics Are Creating “Intexticated” Workers
Avoiding Costly Workers’ Comp Misclassifications
Supervisor Info and Prevention and Return to Work
How You Benefit From Working With A Certified WorkComp Advisor
Prevent Workers Comp Overcharges By Preparing For The Audit
The Experience Mod Demystified
The Importance Of Pre-Employment Screening
Post-Offer/Pre-Employment Forms
The Ugly Truth About On The Job Injuries
When It Comes To Using PPE In The Workplace The Eyes Have It
USL&H The Go to Jail If You Don’t Carry It Insurance
Economic cost of obesity a heavy burden on employers