Proposed Workers Comp Hike Rejected
Massachusetts Commissioner of Insurance Joseph G. Murray has blocked an industry-planned rate increase for workers' compensation that would have cost Massachusetts businesses a projected $175 million, according to Attorney General Martha Coakley's office.
Murray rejected the proposed hike Thursday, after Coakley's office argued against it, saying it was unjustified because it was based on inflated net loss trends and unreasonable projections, according to a statement.
Workers' compensation insurance rates are set at least every other year in a hearing before the insurance commissioner. This year's proposed increase "could not have come at a worse time" for Bay State businesses, Coakley said.
"Blocking the rate increase helps ensure that companies do no overpay for workers' compensation insurance, reducing the cost of doing business here in Massachusetts," Coakley said.
Insurance industry representatives can re-file a proposed rate hike at a later date, but it would have to be based on new data, according to the Massachusetts Office of Consumer Affairs.
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