This is the second year in a row that Mass. businesses will pay a reduced rate
The Executive Office of Labor and Workforce Development (EOLWD) announced this month that businesses in the Commonwealth will pay an assessment rate of 5.6 percent on their total insurance premiums for Fiscal Year 2017. The new rate, which went into effect on July 1st, represents a three percent decrease over the 2015 rate of 5.75 percent. This is the second year in a row that Governor Baker and his administration have reduced the assessment rate employers pay to the Commonwealth on their workers’ compensation insurance policies.“We are very pleased that we can lower this assessment rate to businesses once again this year,” Labor and Workforce Development Secretary Ronald L. Walker, II said. “After reviewing the current assessment rate and the fund balance, we determined it was possible to reduce the rate again.”
“The reduction in the DIA assessment rate for the second year in a row is a clear statement of this administration’s efforts to reduce costs for businesses in the Commonwealth.”, said DIA Director Linda Turner.
The DIA oversees and establishes the annual assessment rates
The Department of Industrial Accidents (DIA), an agency within the Executive Office of Labor and Workforce Development, is charged with the administration of the workers’ compensation insurance system in the Commonwealth. In Massachusetts, all employers are required to carry workers’ compensation insurance. This insurance, in turn, pays for “…any reasonable and necessary medical treatment for a job-related injury or illness; pays compensation for lost wages after the first five calendar days of full or partial disability; and in some cases provides retraining for employees who qualify.”
The DIA’s administrative responsibilities also include acting as a court system for the resolution of disputed workers’ compensation claims and the collection of both statutory fines and fees. Each year, the DIA handles approximately 12,000 workers’ compensation claim disputes.
In addition to the above responsibilities, the DIA also is charged with the establishment of the annual assessment rates. Once set, those assessment rates are then paid by employers to the state. In turn, the DIA is funded by these assessments along with self-insurance programs for employers operating in Massachusetts as well as the statutory fines and fees it collects.
