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NY Gov. Cuomo Announces First Reduction In Workers' Compensation Rates Since '08

Source: Daily News


Posted on 18 Jul 2012 by Neilson

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NY Workers Comp RatesFor the first time since 2008, workers' compensation rates are going down in New York State, Gov. Cuomo announced today.

The New York Compensation Insurance Rating Board, a non-government organization, recommended an increase on rates earlier this year. The administration did not agree that an increase was necessary, and the annually decided rates will ultimately decrease by 1.2% for the upcoming year.

"To create jobs and get our state's economy back on track it is essential that New York's businesses remain in a competitive position to succeed in the global marketplace," Cuomo said in a statement. "For years, the workers' compensation system has been too costly for businesses and ineffective for injured workers."

According to the governor's office, the Workers' Compensation Board earlier this year delivered on reforms from the 2007 Workers' compensation Reform Law, such as capping the number of years for benefits and creating treatment guidelines. These reforms, the governor's office said, affected the decision to decrease rates.

"Under the Governor's leadership, New York has taken dramatic steps that ultimately will benefit workers' compensation insurers, claimants, and businesses -- both large and small -- throughout the state," said Benjamin Lawsky, superintendent of financial services. "At a time when many states are gutting their workers' compensation systems, New York is working to continually improve our workers' compensation system for employers and employees."

The President of the New York State AFL-CIO, Mario Cilento, issued a statement thanking Cuomo for the reforms, saying "the reform led to the indexation of the benefit at two-thirds of the state's average weekly wage so that never again would injured workers suffer an erosion of their benefits through inflation."

Heather Briccetti, president and CEO of the New York State Business Council, said that the effectiveness of the reforms needs to be evaluated, calling the 2007 legislation a "good faith effort."

"The cost of workers' compensation coverage remains a significant competitiveness issue for New York State business, and we look forward to working with the Administration and other stakeholders on the next steps in improving the system," Briccetti said in a statement.


Comments

 
No Markets Left Jul 19 2012 6:19AM Report Abuse
With many of the markets already pulling out or using higher loss cost rates, this action by DFS will result in even less markets. This article is a bit misleading... as the rate increase was declined with out recourse to refile. The savings is due to the NY State Assessment fee reduction... which is not premium. The NY DFS denial to let the NYCIRB not refile alternative rates is not based on the fact that a rate increase is warranted due to loss history. Loss experience is up 6%... and of course the carriers are not making any investment income. To use this denial as a political victory is irresponsble by the governor. The NYCIRB mistake was to ask for a rate increase greater than 7%. Carriers will continue to pull back and those that remain will use higher LCM's, so in the end premiums will go up.
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