MA Changes Workers Comp Rates
The Massachusetts Commissioner of Insurance approved several changes which took effect this past April 1. Here’s the inside scoop on these changes and what they mean for you:
Revised workers compensation rates. The insurance department claims that on average, there is no change in the rate level in MA. I reviewed the new rates and observed many class codes with significant rate decreases. Many manufacturing rates fell 10% while construction rate averages are down 1%. Click here to look up your new rate.
New threshold for the MA construction classification premium adjustment program. This program began in 1996 to give rate relief to contractors who paid significantly higher wages than industry averages. The primary beneficiaries of this rating plan were contractors engaged in state or federal work which required paying the prevailing wage. Eligible construction companies received a premium reduction if average hourly compensation exceeded $18.00 per hour.
This $18.00 threshold remained until this most recent rate change. Effective April 1, 2014, the new threshold is $30.00 per hour. Contractors that pay employees an average wage greater than $30.00 per hour will continue to receive a credit, while those under the threshold will no longer qulify. As in the past, the higher wage that is paid, the higher the offestting credit.
Experience rating plan tweaks. The rate change included some slight changes to the experience modification formula. Some factors in computing the mod were tweaked either up or down, but overall it will have a minimal effect on mods.
Please call our office if you have any questions about these changes.