State Division of Insurance turns down the requested changes.
The Massachusetts Division of Insurance has revealed that they have rejected the proposal that was made to increase the rates for workers compensation by 18.8 percent.
The outcome of this will bring about no changes to the rates.
The decision was made after having undergone a hearing process that lasted five months. The result is that there will not be any change to the current workers compensation rate. According to a statement from the Division of Insurance, this is expected to provide businesses with a total savings of approximately $200 million on the premiums increases that had been projected.
The Division explained that the workers compensation proposed increases were from the official Bureau.
It explained that the request was made by the Workers Compensation Rating and Inspection Bureau, which felt that the hike of nearly 20 percent was necessary for a number of different reasons, which it provided along with its proposal.
_________________________Random Success Quotes to Remember ~ “Successful people do what unsuccessful people are not willing to do. Don't wish it were easier; wish you were better..” - Jim Rohn
However, Joseph G. Murphy, the Massachusetts Insurance Commissioner, explained that “After analyzing the wealth of data and information presented during the case, we found insufficient support for such a significant increase.” He and the Division felt that after they examined the data and looked into the benefits that could come with the workers compensation rate hikes, there simply wasn’t enough justification to add that level of cost to the expenses faced by the businesses within the state.
That said, Murphy and the Division in no way deny that workers compensation is a vital form of coverage and that it provides critical protection for the state’s workforce. It is the coverage that protects employees throughout the state against such events as lost wages and medical care in case they are ever injured while they are at work.
In Massachusetts, businesses must carry workers compensation insurance in order to protect their employees against those perils and the financial damage that can be associated with them. One of the primary responsibilities of the Division of Insurance within that state is to examine any rate change proposals through a review proceeding, in order to give its approval or disapproval.