New Rates Would Take Effect on July 1, 2025
The Massachusetts Division of Insurance (DOI) has announced a virtual hearing for January 14, 2025, to evaluate the Workers’ Compensation Rating and Inspection Bureau of Massachusetts’ (WCRIBMA) latest proposal to raise workers’ compensation insurance rates by an average of 7.1%. If approved, the new rates would take effect on July 1, 2025. This proposal follows a turbulent year in the workers’ compensation market, marked by a DOI-mandated 14.6% rate reduction in 2024.
WCRIBMA, which serves as a licensed rating organization for workers’ compensation insurance in the state, filed its request on November 15, 2024. The filing cites various factors influencing the proposed increase, including changes in wage levels, loss trends, and operational expenses faced by insurers. Stakeholders from across the industry, including employers, insurers, and brokers, are expected to weigh in during the hearing.
Last year, the Massachusetts DOI approved a sweeping 14.6% reduction in workers’ compensation insurance rates. This new increase in rates would essentially cut the previous reduction in half.
Key Details of the Hearing
The upcoming hearing will be conducted via Microsoft Teams, providing an opportunity for public comment and testimony. Commissioner Michael T. Caljouw will oversee the proceedings to determine “…whether the proposed rates are excessive, inadequate, or unfairly discriminatory.” The Commissioner’s decision will hinge on whether WCRIBMA’s proposed rates fall within what is deemed a reasonable range for covering workplace risks in the state.
Interested parties wishing to participate as intervenors or submit oral or written testimony must notify the DOI by 5:00 p.m. on January 8, 2025. Those who intend to reference supporting data during the hearing must submit it electronically by January 7, 2025. Instructions for accessing the hearing will be sent to registered participants by January 13, 2025.
