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Armstrong:
Workers' Compensation Savings a Result
of
Republican-Led Initiatives 10 Years Ago
PA Businesses Continue to Benefit Thanks to
Reforms Under Act 57 of 1996
HARRISBURG -- History-making
reforms to Pennsylvania's workers' compensation system 10 years ago are
continuing to reduce premiums for businesses in the Commonwealth, saving them
money, benefiting workers, and helping the state economy, according to Sen.
Gibson Armstrong (R-13).
Armstrong noted that Act 57,
a Republican-led initiative enacted in 1996, has allowed employers to regain
control over the rising costs of medical expenses and lost wages associated with
workplace injuries. Governor Rendell's February 13 announcement that
Pennsylvania businesses will save $100 million in the next year thanks to a 8.5
percent reduction in workers' compensation premiums is a direct result of Act 57
and other reforms that were a high priority of Senate Republicans, Armstrong
said.
"We took significant steps
10 years ago to reform our workers' compensation system and bring down the
skyrocketing premiums that were strangling many businesses," Armstrong
explained. "Pennsylvania was at a disadvantage with other states, but with the
enactment of Act 57 under the Ridge Administration, we reversed the runaway
costs of workers' comp, made the system fair and competitive, and as a result
we're keeping more jobs here in the Commonwealth."
Act 57 and subsequent
improvements sponsored by Senate Republicans accomplished the following:
-
the timely return to the
workforce of those capable of working;
-
paying benefits only to
legitimately injured workers;
-
ensuring that benefit
payments are commensurate with pre-injury earnings, so workers do not earn
more while receiving benefits than they did on the job;
-
reducing costs
associated with litigation and claims administration; and
-
guaranteeing that reform
savings will be passed directly to employers who pay the premium and benefit
expenses.
In addition, the measure
created the safety committees that the governor touted in his announcement,
Armstrong said. "The safety committees were part of Act 57, which mandated a 5
percent reduction for any business that put one in place. The plan was to stop
after a certain number of years, but Senate Republicans were so supportive of
the safety committees that when the provision was scheduled to sunset, the
Republican Caucus extended it in perpetuity."
Armstrong added that the 8.5
percent drop in rates, scheduled to begin in April, reflect an improved record
of workplace safety in the state, due in large part to the safety committees
that were created under Act 57.
"Overall, the premium
reduction is a result of those committees, the reforms passed in 1996, and by an
improving economy," Armstrong said. "For 10 years, our legislation has been
ensuring that the system continues to protect workers who are injured, but
without burdening companies so much that they have to cut jobs. The end result
has been lower premiums, a more competitive job climate and more opportunities
for Pennsylvania's workers."
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