Healey-Driscoll Administration Rejects Workers’ Compensation Insurance Rate Hike, Saving Massachusetts Businesses Nearly $80 Million

 Healey-Driscoll Administration Rejects Workers’ Compensation Insurance Rate Hike, Saving Massachusetts Businesses Nearly $80 Million  

Follows last year’s action to decrease workers compensation rates by 14.6 percent, saving $87 million for employers 

BOSTON - The Massachusetts Commissioner of Insurance issued a decision today rejecting a proposed 7.1 percent increase in the cost of workers’ compensation insurance in Massachusetts for the period beginning July 1, 2025. This action by the Healey-Driscoll Administration is expected to save Massachusetts businesses nearly $80 million. 

This decision builds on action the administration took in 2024 to decrease workers’ compensation rates by 14.6 percent, saving Massachusetts employers an estimated $87 million. 

Massachusetts businesses are required to carry workers’ compensation insurance for their employees injured in the workplace. Regulators at the Division of Insurance spent months reviewing the proposed increase and analyzing data. Detailed administrative proceedings have been held since January, including the cross-examinations of witnesses and the filing of responsive briefs. The Division of Insurance’s State Rating Bureau, the Attorney General’s office, and the Workers’ Compensation Rating and Inspection Bureau all participated in these administrative processes. After reviewing this information, the Division of Insurance today issued its decision, finding no justification for the proposed increase.  

“We know how important it is to support local businesses that are already struggling with high costs made worse by President Trump’s tariffs,” said Governor Maura Healey. “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.” 

“Our administration continues to focus on ways to help businesses in Massachusetts grow and succeed,” said Lieutenant Governor Kim Driscoll. “This Division of Insurance action will save employers additional cost, which is critical in today’s economic climate.” 

“I am pleased with the detailed work that the State Rating Bureau has done to support today’s decision,” said Insurance Commissioner Michael Caljouw. “The Commonwealth is delivering good news for employers struggling with rising costs.” 

“This decision is welcome news for businesses across Massachusetts,” said Office of Consumer Affairs and Business Regulation Undersecretary Layla D’Emilia. “Rejecting the workers’ compensation insurance rates proposal ensures important stability for business owners.” 

Today’s decision comes after the Division of Insurance issued regulatory guidance to health insurers directing them to limit the cost of health care deductibles and co-pays that patients are required to pay.