Turning the Tide: Reimbursement Rate Change on the Horizon
by Alana Quartuccio
Change is coming.
Massachusetts collision repairers have waited an exorbitant amount of time for some type of upwards movement toward labor rate reimbursement reform. After four decades of insurance-industry fueled suppression that left body shops stuck at a stagnant rate hovering barely above $45 per hour, change is finally on the horizon.
Last month, Governor Healey signed the Fiscal Year 2027 budget, which includes language that will require a new labor reimbursement rate to be set in the new year.
Massachusetts – a state with one of the highest costs of living – has been recognized as having the lowest labor reimbursement rate in the nation. There has been minimal movement since 1988 when the rate was $30 per hour.
“The tide has definitely turned here in Massachusetts,” states Guy Glodis, MABA’s legislative agent. “The auto body industry has gone from long sustained defense to actively playing offense.”
Although details are not yet available, a labor reimbursement rate change is expected to come sometime in 2027.
“Massachusetts consumers deserve safe, proper, manufacturer-compliant repairs, supported by fair and reasonable labor reimbursement,” exclaims MABA Executive Director Lucky Papageorg. “This is a tremendous victory – not only for our industry, but more importantly, for every Massachusetts motorist.”
“The decision making has been reallocated from having the insurance industry dictate the reimbursement to having the commissioner of the Division of Insurance here in Massachusetts set the rate,” Glodis explains. “We are cautiously optimistic that in the near future the rate will be competitive, if not on par, with the national average.”
Glodis believes MABA has really built strong legislative alliances in both the House and Senate and is very optimistic about the future for the auto body industry in the Commonwealth.
“We have had two back-to-back legislative victories in the past two years,” he adds, shining light on the formation of the labor rate board which studied the reimbursement rate in 2025. This latest victory to have a new rate set by a third-party rather than the insurance industry is seen as a huge triumph.
The formation of the Auto Body Labor Rate Advisory Board (ABLRAB) at the close of 2024 gave collision repair professionals a seat at the table in the discussion for the first time. Three representatives from the auto body community – Brian Bernard (Total Care Accident Repair; Raynham), Matthew Ciaschini (Full Tilt Auto Body; West Hatfield) and Rick Starbard (Rick’s Auto Collision; Revere) served on the Board along with members of the insurance industry and other related stakeholders, including a consumer advocate and an economist. The Board met several times throughout 2025 to study the labor reimbursement rate.
During that time, two public hearings were held allowing collision repair professionals to come forward on behalf of the need for change – not just to save an industry, but to also protect consumers by ensuring that shops were able to safely and properly repair vehicles according to manufacturer standards. The repairers’ plight was finally heard as the majority agreed that change was needed.
“This accomplishment demonstrates what can be achieved through teamwork, persistence, professionalism, and a shared commitment to doing what is right,” states Papageorg. “While today is certainly a day to celebrate, our work is far from over.
MABA remains committed to working collaboratively with the Division of Insurance, legislators, insurers, consumer advocates, and all stakeholders to ensure that the new statutory process is implemented fairly, transparently, and in a manner that fulfills the Legislature’s intent. Thank you to everyone who worked to make this possible.”
Glodis highlights the recognition MABA’s efforts are receiving from legislators in the House and Senate. “We’ve had dozens of legislators who have publicly announced their support for increased labor reimbursement rates and also for fair and equitable decisions regarding the ADALB Board. Dozens of legislators in each chamber have called for these reforms. In my opinion, it overwhelmingly demonstrated that Massachusetts was woefully under-reimbursed with its labor reimbursement rate.”
Glodis highlights the dedication MABA and its supporters have demonstrated all these years as they’ve advocated for change.
“I’m very optimistic about MABA and our future. We’ve had more legislative victories in two years than in 25 years combined. It’s all thanks to the dedication and commitment of our Executive Board, our Executive Director and our membership. We are unequivocally turning the corner making the auto body industry a respectable profession with fair and equitable pay in comparison to other states and other body shops throughout the nation.”
“We’ve spent decades defending our industry against an unfair system that put corporate insurance profits ahead of proper vehicle repairs,” observes MABA Vice President Douglas Begin. “This legislative breakthrough signals that our voice is finally being heard at the highest levels of state government. Moving the rate-setting power away from insurers and into the hands of the Division of Insurance is a massive structural shift. We are proud of this milestone, and as MABA leadership, we are ready to roll up our sleeves and work to ensure the new process reflects the true market value of our labor.”
Want more? Check out the August 2026 issue of New England Automotive Report!