Published on
Last updated on

New York Self Insured Trusts – No Trust and Certainly Not Insured

As noted in a previous post (Injured Workers Will Suffer again)on this Blog, there is a financial and social disaster about to behalf the injured workers in New York State. New York allows for Self-Insured Trusts. Basically groups of similar employers who pull monies together to insure themseleves and provide approriate Workers' Compensation Benefits to injured workers.

Unfortunatley, mismangement, greed, and non-existent oversight have led to a disaster that harkens back twenty-five years to the great Savings and Loan scandals! Yes, dozens of Self-Insured Trusts are about to or have gone belly-up. Recently, CRM a "third-party" coordinator and provider of such services has surrendered its license in New York. The Workers Compensation Boardis seeking to help "bail out" these trusts and everyone in the State of New York, the taxpayer, will foot the bill.

Workers' Compensation has been hailed as the Great Compromise over the past ninety years, where workers gave up their right to sue an employer, and the employer promised to secure payment of workers compensation benefits (medical and indemnity). Yet in the Self-Insured world of New York today, the ultimate party to pay will be all of us, and the only one truly being hurt will be the injured worker.

Imagine, suffering the indignity of being injured on the job, struggling to make payments on bills due to paltry benefits, trying to recover from a traumatic injury, and now being told you may or may not get benefits until this mess is straightened out, and oh yeah, you ultimately pay for your own care anyway since the taxpayer will be bailing out these trusts.

The business community, the Workers' Compensation Board and the State of New York has failed! I will be posting additional links and stories with the grueling details, stay tuned!