Employers in Massachusetts who do workers’ comp—which is basically all of you out there with employees other than yourselves—you should know about an important rate change in the state’s workers’ comp system. The new workers’ comp rate in the Bay State is lower, on an average of 16.9 percent lower than the last workers’ comp rate.
Back in March, the Workers’ Compensation Rating and Inspection Bureau of Massachusetts had submitted a rate that was actually 3.5 percentage points higher than the rate that actually went through. The Workers’ Compensation Rating and Inspection Bureau of Massachusetts is just a non profit organization run by insurance companies, however, that can only recommend to the state what it should set as its workers’ comp rate.
This new rate was established by the State Rating Bureau of the state’s Division of Insurance, as well as the state attorney general. It will go into effect starting Sept. 1 of 2007. According to a representative of the Workers’ Compensation Rating and Inspection Bureau of Massachusetts, though the insurance companies did not get the rate that they had asked for, the insurance companies still feel that it is a good balanced rate that allows employers to have lower workers’ comp rates in the state, but allows insurance companies to earn money and stay in business in the state.
One of the reasons for the lower workers’ comp rates in the state could be the fact that the comp system in Massachusetts has seen lower rates of workplace injuries in the state, and lower costs for medical claims resulting from workplace injuries and illnesses. One of the reasons this could be possible is that you, the Massachusetts employers, have focused attention on putting up safety posters and other measures to reduce workplace injuries and accidents.