Premium Credits Remain Stable as PCCPAP Participation Declines Across Pennsylvania’s Construction Industry:
The Pennsylvania Construction Classification Premium Adjustment Program (PCCPAP) continues to play a critical role in aligning workers’ compensation costs with wage levels across the construction industry. By providing premium credits to higher-wage employers while maintaining balance within classifications, the program supports equitable pricing and competitive fairness.
This latest analysis extends the review through Policy Year 2022, offering a 17-year perspective on participation, credit stability, loss experience, and policy characteristics. While participation has continued to decline to its lowest level on record, underlying indicators—including stable credit levels, narrowing loss ratio gaps, and upcoming wage threshold adjustments—suggest potential shifts in program utilization ahead.
5%
Participation declined to just 5% of eligible businesses in 2022—its lowest level in the study period—while average credits remained steady at approximately 15%.
What’s in the report
- Participation fell to 5% of eligible businesses in 2022, continuing a long-term decline of roughly 50% since 2006. However, an upcoming reduction in qualifying wage thresholds (effective October 2026) is expected to increase eligibility and may reverse this trend.
- Average PCCPAP credits held steady at approximately 15% (15.3% in 2022), with a long-term average of 14.7%. This consistency signals that the program continues to function predictably despite shifts in participation and market conditions.
- While participating businesses continue to show higher average loss ratios (67% vs. 53%), 2022 reflects the smallest gap since 2016, suggesting improving alignment between participants and non-participants relative to expected outcomes.