Health News

Governor Signs Pennsylvania WC Reform

[Posted 6/27/96] Despite the fierce objections of organized labor, Pennsylvania Governor Tom Ridge signed a comprehensive workers’ compensation reform package on June 24, 1996. The new bill was based on Ridge’s five principles of WC reform:

• prompt return of injured workers to the workforce,
• pay benefits only to legitimate claimants,
• make sure that benefit payments are commensurate with pre–injury earnings,
• reduce the administrative and litigation costs, and
• pass savings back to employers.

The WC Reform bill is part of a larger program to increase Pennsylvania’s competitiveness. "We will continue to challenge the status–quo—and restore Pennsylvania’s competitiveness," Governor Ridge said.

(Editor’s Note: Further evidence of the national trend in WC reform which is causing a significant reduction in WC insurance rates and improvement of insurance profits. Given the strong competition between states to attract new employers, this reform movement is likely to continue. wln)