Policy Documents

The Workers' Comp Tug of War

Penelope Lemov –
January 1, 1997

By all measures, Pennsylvania's workers' compensation system was out of control in the early 1990s. Medical costs were exploding, and insurance premiums had tripled. Some insurance companies were threatening to abandon the business altogether. If the program wasn't fixed, the state's Chamber of Business and Industry told legislators, companies would mvoe away and take their jobs and tax revenue with them.

This article reviews the reforms undertaken by Pennsylvania, and other states, in the late 1980s and early 1990s. "As is usual when change occurs," the article reports, "there are losers as well as winners."