Our new main office is now open at 950 Highland Ave., Needham, MA 02494
120 Highland Ave, Needham, MA 02494
345 Boylston St, Newton, MA 02459
Need to Know Which Car Insurance is Right for You?
Workers Comp Rates down by 1%
The parties to the 2008 Massachusetts workers' compensation rate-setting case reached a quick agreement that will lower rates by an average 1.0%.
The stipulation between Workers' Compensation Rating and Inspection Bureau of Massachusetts (WCRIB), the State Rating Bureau- the Division of Insurance's actuarial arm- and the office of Attorney General Martha Coakley will go into effect Sept. 1.
"This resolution to the 2008 rate filing – earliest achieved in recent years – was due to the spirit of cooperation among all the parties," noted Paul Meagher, WCRIB president.
The WCRIB had requested a 2.3% average increase in rates. A hearing was held on April 1, representing one of the quickest resolutions for the workers' compensation hearings in recent memory.
The Patrick Administration estimated the savings for Massachusetts employers at $11 million and noted that it is the ninth time rates have dropped since 1994, with rates dropped by 68% in the last 14 years. Had the WCRIB's request been granted, the possible increase to businesses would have been $25 million, according to the governor's office.
"This most recent rate cut balances the need to help businesses control costs with the responsibility to provide employees with appropriate benefits," said Gov. Deval Patrick. "Lowering the cost of workers' compensation insurance is very much in keeping with our larger goal of improving the state's business climate so that we can grow the economy and create jobs."
According to Massachusetts Commissioner of Insurance Nonnie S. Burnes, the rate cut "offers further proof that reforms have created efficiencies within the system that continue to produce savings for businesses"
Massachusetts Secretary of Labor and Workforce Developments Suzanne M. Bump attributed the continued decline in rates to the efficient claims management, workplace safety and return-to-work programs that we emphasized in workers' compensation legislative reforms. Bump, a former legislator, authored the 1991 reform law.
"Businesses are mandated to purchase workers compensation insurance under state law and should be provided with fair rates," said Coakley. "This resolution will help small businesses keep the costs of operating in Massachusetts down during these challenging economic times."
She announced that about 50,000 small businesses will see additional decreases between 5% and 10%. This rate relief is the result of an agreement to lower fixed costs in premiums for smaller employers.