Division of Insurance rejects proposals to make workers’ compensation insurance more expensive
The Massachusetts Division of Insurance has announced that it has rejected proposals to increase the rates of the state’s workers’ compensation insurance program by 18.8%. The decision comes at the end of a five-month long review process which examined the necessity of the proposed rate increase. The rate increase proposals came from the Massachusetts Workers’ Compensation Rating and Inspection Bureau. Regulators have determined that the rate increase proposal is not necessary and that workers’ compensation insurance prices will remain unchanged.
Regulators base decision on months of investigation
Regulators have spent months collecting the data they needed to adequately examine the rate proposal. According to this data, regulators have determined that there is no reason to raise the rates of the state’s workers’ compensation insurance program. The Division of Insurance notes that the decision to reject the rate increase proposals results in an estimated $200 million in savings on premiums. This is expected to be well received by consumers as it provides some financial relief.
_________________________Random Quotes to Remember ~ “The best investment is in the tools of one’s own trade.” – Benjamin Franklin
Workers’ compensation insurance continues to be a hot issue
The state’s workers’ compensation program provides coverage for those that have been confronted with lost wages and provides financial support for workers that have been injured on the job. This type of coverage has received a great deal of attention over the past two years, with some states making extensive revisions to the coverage they offer to employees. Some employers have made drastic cuts to the workers’ compensation insurance plans they offer due to the rising costs of medical care.
Insurers may look to raise rates in the future
Insurers have been looking to raise the rates of workers’ compensation insurance for some time. Medical costs are often cited as the main reason to raise rates. Massachusetts regulators have not seen any evidence that would suggest medical costs are an appropriate incentive to raise rates for this coverage. The state may still see rate increase proposals in the future, but rates will remain unchanged for the time being.