The Healey-Driscoll Administration has announced a significant win for employers across Massachusetts: state regulators have rejected a proposed 7.1% increase in workers’ compensation insurance rates. The decision, finalized by the Division of Insurance on May 21, 2025, is projected to save Massachusetts businesses nearly $80 million in additional costs for the 2025–2026 rate period.

This decision follows a similar action in 2024, when the state reduced workers’ comp rates by 14.6%, resulting in an estimated $87 million in savings for employers

What Happened?

• The Workers’ Compensation Rating and Inspection Bureau, which represents insurance companies, submitted a request to raise rates by 7.1% starting July 1, 2025.
• The Attorney General’s Office opposed the increase.
• The Division of Insurance held detailed hearings beginning in January 2025, including testimony and legal briefs.
• After reviewing the evidence, the Division of Insurance issued a final decision rejecting the increase, stating there was no justification for the proposed hike.

Governor Maura Healey emphasized the administration’s focus on cost reduction:

“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.”

Lieutenant Governor Kim Driscoll added:

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

The Office of Consumer Affairs and Business Regulation Undersecretary Layla D’Emilia added:

“This decision is welcome news for businesses across Massachusetts. Rejecting the workers’ compensation insurance rates proposal ensures important stability for business owners.”

Have questions about workers’ compensation or how this decision affects your business? Call our HR Helpline at 800-470-6277 or email us at helpline@aimnet.org—we’re here to help.