New workers comp rates

Published on Thursday, April 24, 2008

The state announced this month that 2008 workers’ compensation rates will average about 1 percent less, saving Massachusetts businesses $11 million. “This most recent rate cut balances the need to help businesses control costs with the responsibility to provide employees with appropriate benefits,” said Governor 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.”

The reduction may not seem large, but consider that the Workers’ Compensation Rating and Inspection Bureau (WCRIB), a private, non-profit association of insurers, had requested a 2.3% hike in 2008 workers’ compensation rates. Had the WCRIB requests been approved, businesses would have seen the cost of providing compensation benefits to their employees increase by $25 million.

The new rates go into effect on September 1, 2008.

Workers compensation insurance provides coverage for lost wages, permanent injuries resulting in loss of function and medical care for workers injured on the job. Massachusetts businesses are required to carry workers’ compensation insurance. The Division of Insurance sets the rates after a rate setting proceeding.


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