Governor Deval Patrick recently announced that the
Massachusetts Division of Insurance’s state rating bureau has reached an
agreement that will reduce workers’ compensation insurance rates by 2.4
percent, saving the Commonwealth’s businesses an estimated $22.5 million in one
“This rate cut balances the need to help businesses control
costs and provide employees with appropriate benefits,” said Governor 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.”
The Workers’ Compensation Rating and Inspection Bureau
requested a 4.5 percent rate increase, which would have cost businesses about
$42 million based on projected premiums of $935 million, Patrick reported.
Instead, the Division of Insurance negotiated the tenth reduction in workers’
compensation rates in Massachusetts since 1994.
“The Division of Insurance’s objective is to ensure a fair
and equitable rate that protects workers without overly burdening employers,”
said Barbara Anthony, undersecretary of the Office of Consumer Affairs and
Business Regulation, which includes the Division of Insurance. “The 2010 rate cut
offers further proof that reforms have created efficiencies within the system
that continue to produce savings for businesses.”
The new rates take effect September 1, 2010.