Massachusetts Gov. Deval Patrick announced an agreement in the 2008 workers’ compensation rate setting proceeding that will save Massachusetts businesses $11 million. The new rates average to a 1.0% reduction per employer and mark the ninth time rates have decreased since 1994. The Workers’ Compensation Rating and Inspection Bureau (WCRIB), a private, non-profit association of insurers, requested a 2.3% hike in 2008 workers’ compensation rates. Had the WCRIB requests been approved, businesses would have reportedly seen the cost of providing compensation benefits to their employees increase by $25 million.
The settlement signed Thursday by Commissioner Burnes and Attorney General Martha Coakley calls for a 1.0% average rate reduction. In addition, the agreement further reduces average rates for small businesses, resulting in a statewide average rate reduction of 1.1% - a savings that amounts to approximately $11 million for Massachusetts employers. The new rates go into effect on Sept. 1, 2008.
As part of a comprehensive overhaul of the workers’ comp system in 1991, efficient claims management, workplace safety and return-to-work programs were increasingly emphasized. This reduction marks the ninth time rates have been cut since 1994 and reflects a total rate decrease of 68% in that same period.
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