Boston, MA – The Workers’ Compensation Rating and Inspection Bureau of Massachusetts recently announced that Commissioner of Insurance Gary D. Anderson has approved a Stipulation for the general revision of workers’ compensation rates, effective 12:01 A.M., July 1, 2023, applicable to new and renewal policies.
The Stipulation includes an overall average decrease of 10.2% in the existing workers’ compensation average rates and will vary by class. Rating values in the Experience Rating Plan and the Retrospective Rating Plan will be revised, as well as premium credits in the Massachusetts Benefits Deductible Program and Massachusetts Benefits Claim and Aggregate Deductible Program.
- Rate Level Decrease of 10.2%
The overall average decrease of 10.2% in the existing workers’ compensation average rates will vary by class.
- Experience Rating Plan Changes
The Experience Rating Plan Expected Loss Rates and D-Ratios will be revised.
- Retrospective Rate Plan Changes
State Special Rating Values for retrospective rating will be changing, including excess loss factors and hazard group differentials. The various tables of retrospective expense ratios will be revised.
- F – Classes – Overall Rate Level Decrease of 15.6%
The overall average decrease of 15.6% in the existing workers’ compensation F- Class average rates will vary by class.
- USL&HW Act Coverage Percentage Applicable to Nonf Classifications
The percentage applicable in connection with Rule XII-D-3-b “U.S. Longshore and Harbor Workers’ Compensation Act” will be revised.
- USL&HW Act Expected Loss Factor Applicable to Non-F Classifications
The factor used to modify the expected loss rate for a state class whose rate was modified in accordance with Rule XII-D-3-b “U.S. Longshore and Harbor Workers’ Compensation Act” will be revised.
- Small Deductible Credits
The premium credits applicable to the election of small deductibles under either the Massachusetts Benefits Deductible Program or the Massachusetts Benefits Claim and Aggregate Deductible Program will be revised.
- Disease Elements Table
The rates associated with Class 0059, 0065, 0066 and 0067 will change.
- No Changes in the Following:
- A. Expense Constants
- B. Loss Constants
- C. Admiralty Law and Federal Employers’ Liability Act classifications
- D. Merit Rating Program
- E. Massachusetts Construction Classification Premium Adjustment Program (“MCCPAP”)
- F. Premium Discount Tables A and B
Experience ratings and ARAP factors (including replacement of preliminary experience ratings and ARAP factors) effective July 1, 2023 and subsequent will be issued in due course using the new rating values.
MCCPAP Factors effective July 1, 2023 and subsequent will be revised in due course using the revised experience rating offset.
The WCRIB also noted that when the new rates and experience ratings are received and incorporated into policy issuance, carriers should no longer attach Massachusetts Pending Premium Change Endorsement WC 20 04 01 to policies. Revised Massachusetts manual rate pages will be available on its website.
The new rates and rating values will also be available in electronic form (Microsoft Excel and text files) on its website.
See WCRIB Circular Letter #2413 (PDF) for the list of revised items and a copy of the Commissioner’s Decision and Order and the Stipulation.
Source: WCRIB MA