Massachusetts’ businesses will save $150 million in workers’ comp under a settlement to lower rates, according to the Massachusetts Attorney General’s Office.

The settlement was reached between the Attorney General’s Office and the State Rating Bureau and Workers’ Compensation Rating and Inspection Bureau. The settlement results in an average rate rollback of 12.9% on workers’ comp insurance rates in Massachusetts.

Workers’ compensation rates are set periodically in administrative rate hearings before the Division of Insurance. The insurance industry, which files a joint rate proposal via the Workers’ Compensation Rating and Inspection Bureau, an industry group, must provide a proposed rate supported by actuarial data at least every two years.

After a review of data in December with the Attorney General’s Office and the State Rating Bureau, the industry informed the Division of Insurance that rates should decrease by 11.1%. Following a public hearing in January along with a review of additional materials, the Attorney General’s Office and State Rating Bureau found further rate reductions were appropriate, and the industry agreed to the current settlement.

“This settlement saves businesses millions of dollars,” Massachusetts Attorney General Maura Healey said. “When we lower rates for workers’ compensation insurance, we protect workers and allow businesses to invest in higher wages and growth.”

Workers’ comp can be a big expense for staffing firms. Staffing Industry Analysts recently released a report on workers’ comp and industrial staffing firms for download by SIA corporate members.