Pennsylvania considers loss cost increase in wake of impairment evaluation ruling

The Pennsylvania Compensation Rating Bureau filed a 6.06% loss cost increase as a response to a Pennsylvania Supreme Court decision.

In June, the state’s Supreme Court struck down the state’s impairment rating evaluation process as unconstitutional. The court ruled that the “General Assembly unconstitutionally delegated to the AMA the authority to establish criteria for evaluating permanent impairment.”

“We consider whether this mandate violates the constitutional requirement that all legislative power be vested in a General Assembly, which shall consist of a Senate and a House of Representatives,” the Pennsylvania Supreme Court said in June “We hold that it does.”

“The ruling eliminated a cost containment measure that was put in place in the Pennsylvania system over 20 years ago with the enactment of Act 57 of 1996. Workers compensation industry experts have concluded (impairment rating evaluations) significantly reduced uncertainty for the injured worker, the employer and the employer’s insurer regarding the length of time and the costs of workplace injuries,” the bureau said in its filing. 

The bureau will consider the changes and submit a filing based on its analysis if there is a change in Pennsylvania law regarding evaluations due to legislation. If a law change makes this filing unnecessary and occurs with time before the effective date, the bureau will withdraw this filing, according to the filing.