The Massachusetts Division of Insurance has announced that the
worker’s compensation rates in the Commonwealth will rise by an average of 1.5% on July 1, 2016.
Division of Insurance claims $80 million in savings for employers
The settlement will allow rates to increase while saving employers approximately $50 million annually in Massachusetts workers’ compensation premiums
“In a time when the costs of doing business continue to be a challenge, I’m pleased that our State Rating Bureau worked convincingly to broker an agreement on this important and mandatory insurance coverage. This is an outcome that has a substantial positive impact for Massachusetts businesses,” said Daniel Judson, Commissioner of Insurance.
The maximum rate increase for any class was reduced by 15 %
In Massachusetts, rate changes in the workers’ compensation system vary for individual classes of employment. As a result, the reduced rate increase means that the maximum rate increase for any class has been reduced by 15 percent.
With rates now officially approved, the Division says insurers may submit “downward deviation requests” which might actually result in lower rates for some employers. However, only about 50 insurers, currently offer such reductions, which can range from a few percentage points to over 25 percent.
To view the DOI Stipulated Order in the WCRIB 2016 Rate Request click here.
For more information on how the Workers’ Compensation Rate increase will effect your business
contact your McSweeney & Ricci Account Manager.