Massachusetts Insurance Commissioner Michael Caljouw denied a proposed 7.1% rate increase from the Workers’ Compensation Rating and Inspection Bureau of Massachusetts.
He challenged key parts of the bureau’s proposal, including its methods for estimating losses and forecasting trends.
The rate hike faced opposition from both the attorney general’s office and the State Rating Bureau. The attorney general recommended a 6.2% rate cut.
The State Rating Bureau proposed decreases of 2.1% to 3.1% for standard job classes and 6.7% to 7.6% for federally regulated sectors.
Caljouw also rejected these proposed reductions. His decision stated that current rates are not too high, so no changes are needed.
The rejection is expected to save Massachusetts businesses about $80 mn. This follows a 14.6% workers’ comp rate cut in 2024, which saved businesses around $87 mn, according to the Division of Insurance.
Governor Maura Healey supported the decision
She said it will help businesses manage rising costs, which she linked to President Donald Trump’s economic policies.
Healey also pointed to new proposals this week to reduce energy prices and lower health insurance deductibles for individuals and small businesses.
With today’s action, we are saying no to any increased workers’ compensation rates for our companies.
“We are doing all we can to reduce business costs, which is why this week we also proposed major changes to lower energy costs and limit health deductibles for patients and small businesses,” Healey said in a statement.
