BOSTON - With a settlement in this year's Workers' Compensation rate setting proceeding, businesses will save $170 million -- a 16.9 percent savings per business reduction from the last rate reduction in 2005.
First-year attorney general Martha Coakley and Gov. Deval Patrick on Wednesday announced the settlement, which has already been approved by the state's Insurance Commissioner Nonnie Burnes.
"In order for Massachusetts' economy to thrive, it is crucial that we bring down the costs of doing business in the Commonwealth," Coakley said.
"By lowering the cost of Workers' Compensation insurance, we can continue to promote job growth in Massachusetts by not only attracting new businesses, but also allowing established businesses to cut their costs while still providing their employees with the appropriate coverage."
The last rate reduction, in 2005, represented only a 3 percent decrease from the previous rate. Patrick added, "Where rates were once spiraling out of control, they're now being contained. This most recent reduction means employers will continue to see their business costs go down and workers will continue to receive the support and protection they deserve."
The Workers' Compensation Rating Inspection Bureau, a private non-profit association of insurers, proposed a 13.4 decrease earlier this year, but Coakley says she pushed for a larger decrease.
State businesses will save approximately $35 million after the rates take effect in September, she added. Her office's Insurance and Financial Services Division represents the public interest in rate trials.