“Our goal at the Division of Insurance is to make sure that these rates are fair, they protect workers, and that they do not overly burden employers,’’ Murphy said in a statement. “This agreement does all of those things.’’
Workers’ compensation insurance covers lost wages, permanent injuries, and health care for employees hurt on the job. Under the agreement, rates will hold at current levels until at least September 2012. The freeze follows a 2.4 percent rate cut last year.
Paul Meagher, president of the Workers’ Compensation Rating and Inspection Bureau, said the rate freeze would help Massachusetts businesses recover from the recent downturn, but he warned rising health care costs could later require an increase.
“Even though the frequency of workplace injuries has continued to decline in Massachusetts, the cost of claims has continued to rise, driven mainly by the relentless increase in medical and pharmaceutical costs,’’ Meagher said in a statement. “If this trend continues, as forecasted, it will contribute to a need for higher workers’ compensation rates in the future.’’
Barbara Anthony, undersecretary of the state Office of Consumer Affairs and Business Regulation, said in a statement that the rate agreement shows the Patrick administration “is committed to continued improvement of our business climate.’’
