Carrier's Reporting Error Inflated Loss Cost Rate

Stakeholders of all stripes were stunned Wednesday to hear that Pennsylvania's state rating bureau early this year had based a rate increase on bad data, a miscalculation that may have cost employers $260 million in premiums. “It’s quite a surprise. We’re still trying to wrap our heads around it,” said Alex Halper, director of government affairs for the Pennsylvania Chamber of Business and Industry. The Pennsylvania Compensation Rating Bureau this week filed two major loss cost decreases. One was expected — a 5.24% reduction resulting from the passa...