Pennsylvania Workers’ Compensation System: 2023 Report Key Highlights

by Karl Voigt

Every year, the Pennsylvania Department of Labor and industry is required to author a Workplace Safety Annual Report. The 2023 Report, just published, highlights the Commonwealth’s efforts and achievements in maintaining a robust and efficient workers’ compensation system that protects both workers and employers. The report outlines the administration and operational structure, financial data, key initiatives, and statistical trends that shaped the workers’ compensation landscape in 2023.

Key Highlights:

1. Financial Overview:
   • The Pennsylvania workers’ compensation system managed over $2.9 billion in wage and medical benefits for injured workers in 2023.
   • The system handled 162,194 reports of workplace injuries and illnesses, showing a slight decrease from the previous year.
   • The Bureau of Workers’ Compensation administered a budget of nearly $77 million, which supported various operational functions, including the Workers’ Compensation Office of Adjudication and the Workers’ Compensation Appeal Board.
2. Workplace Safety and Training:
   • The Health & Safety Division certified over 13,000 employer workplace safety committees, impacting approximately 1.6 million employees and contributing to cumulative premium savings exceeding $901 million since the program’s inception.
   • The division also conducted 580 training sessions on nearly 200 topics, reaching over 28,500 participants. These efforts were geared toward promoting a culture of workplace safety and reducing the incidence of workplace injuries and illnesses.
3. Technological Advancements:
   • The Workers’ Compensation Automation & Integration System (WCAIS) saw significant digital transformations, with enhancements to the WCAIS Dashboard and Homepage. This ongoing project aims to streamline and improve the efficiency of workers’ compensation processes, with full completion anticipated by 2026.
   • The Bureau introduced WCAIS Teams Training, which began in September 2023, attracting 976 participants. This training is part of a broader initiative to enhance user experience and efficiency through regular updates and stakeholder engagement.
4. Legal and Compliance Efforts:
   • The Compliance Division played a crucial role in enforcing workers’ compensation laws, particularly in prosecuting uninsured employers. A notable case involved the successful prosecution of a roofer who improperly classified employees as “independent contractors” to avoid workers’ compensation obligations, resulting in a restitution of nearly $190,000.
   • The Special Funds & Compliance Division continued its efforts to manage various special funds, including the Supersedeas Fund, which disbursed over $33 million in payments.
5. Ongoing Projects and Initiatives:
   • The Bureau maintained its commitment to stakeholder engagement through quarterly meetings, training sessions, and the distribution of its newsletter, “News & Notes,” to over 400,000 stakeholders.
   • The Healthcare Services Review Division processed over 20,000 fee review applications and continued to oversee utilization reviews, which allow for peer review of the care being rendered and injured worker.
6. Community Outreach and Support:
   • The Kids’ Chance of Pennsylvania initiative, which provides scholarships to children of workers who have been seriously injured or killed on the job, awarded $188,000 in scholarships to 40 students for the 2023-2024 academic year. This program reflects the Bureau’s broader commitment to supporting the families of injured workers.

Overall, the 2023 report underscores Pennsylvania’s ongoing efforts to improve the effectiveness and efficiency of its workers’ compensation system while prioritizing workplace safety and ensuring fair treatment for injured workers. Pennsylvania’s focus on digital transformation, legal compliance, and community support highlights its proactive approach to managing and enhancing workers’ compensation services.

The entirety of the report can be found here.