Massachusetts businesses will collectively save about $80 million on workers’ compensation costs under an average 3.5 percent insurance rate rollback that was announced Monday afternoon by the attorney general’s office.
The new rates are set to take effect July 1 and are part of a settlement reached between the attorney general’s office, the State Rating Bureau, and the Workers’ Compensation Rating and Inspection Bureau of Massachusetts (WCRIB).
“This settlement will save millions of dollars for Massachusetts businesses – many of whom are still struggling to recover from the pandemic,” AG Maura Healey said in a statement. “Not only does lowering workers’ compensation insurance rates help small businesses, allowing them to invest in higher wages and growth, but it also helps protect workers.”
The rates are set periodically as part of administrative hearings before the Division of Insurance involving insurance companies. The AG’s office can intervene and litigate against the proposal to protect the public interest. In a December filing, the industry sought a statewide average rate increase of 2.7 percent.