Pennsylvania discusses innovative insurance fund addressing mine subsidence impact

The Pennsylvania House of Representatives Labor & Industry Committee convened on March 18, 2025, to discuss significant aspects of a proposed bill concerning worker contributions to an insurance fund. The meeting highlighted the funding structure and implications for small businesses.

A key point raised during the discussion was the misconception regarding state funding for the insurance program. Committee members clarified that the program is primarily funded by contributions from workers and employers, with state funds playing a management role rather than covering the entire cost. This clarification aimed to address concerns about potential ongoing costs to the state.

The committee also drew parallels to the mine subsidence insurance fund managed by the Pennsylvania Department of Environmental Protection (DEP). This fund, recognized as the only one of its kind in the nation, has been effective in assisting individuals affected by mine subsidence when private insurance options fell short. The committee expressed confidence in the government's ability to manage similar programs effectively.

Additionally, the proposed bill stipulates that contributions from employees and employers will not exceed 1% of an employee's wages, with small businesses employing 15 or fewer workers exempt from the employer's portion of the contribution. However, employers are still required to deduct half of the contribution from their employees' wages.

The committee received input from the Small Business Majority, which represents small businesses across Pennsylvania, indicating ongoing engagement with stakeholders regarding the bill's implications.

Overall, the meeting underscored the importance of clarifying funding mechanisms and the potential impact on small businesses as the committee moves forward with the proposed legislation.