On Thursday March 20th, 2014 The Massachusetts Division of Insurance announced it has reached a settlement with the Workers Compensation Rating and Inspection Bureau and the Attorney’s General’s Office that calls for a zero percent overall average rate change effective April 1st 2014 for new and renewal policies. According to the announcement this will save Massachusetts businesses about $77 million dollars.
Please click on the below to review:
- New MA Workers Compensation Rates
- April 1st 2014 Construction Credit Revision
- Expiring average hourly wage
Despite the no change in overall rate level, most individual class rates will change to reflect industry group differentials and new class relatives. This could have substantial impact on overall premium calculations. Workers Compensation rates in Massachusetts were last raised in 2001 by 1%. Since then, rates have declined by nearly 25 %.
The new Stipulation for the general revision of workers compensation rates includes revisions in the following areas
- State Classes Rates
- Massachusetts Construction Classification Premium
- Experience Rating Plan
- Retrospective Rate Plan
- F-Classes Rate Level
- US Longshore and Harbor Workers Compensation Act
- Small Deductible Credits
Please see above the new average hourly wage schedule that will be applicable for employers participating in the Massachusetts Construction Classification Premium Adjustment Program. For the eligible classifications an hour wage now begins at $30.00/ hour compared to $18.00.