New York Governor Andrew Cuomo’s aides have approved a 9.5% increase in workers compensation rates this week. The estimated increase NY employers will see will be less than 3% due to the reforms recently put into place this past spring. Originally, the NY Compensation Insurance Rating Board wanted a 16.9% hike to cover loss cost. This projected amount was for the increase in workers compensation claims throughout the year ahead.
After a hearing was held by the Department of Financial services, the amount was reduced to below 10 percent for the increase. After reforms kick in as part of the state budget for 2013-2014, the increase should be around 2.8%.
New York State is considered to be one of the most expensive in the country concerning the costs associated with workers compensation for NY employers. It is currently ranked in fifth place behind other states including Alaska, Connecticut, California, and Illinois. The median costs on a national level ranges at $1.88 per every $100 of payroll and New York averages around $2.82 for every $100.
The Department of Financial Services understands the costs increases in the workers compensation system and the Business Council recognizes this. they are committed to continuing to further the reforms of the workers compensation system to gain even greater costs savings and to keep workers compensation insurances costs low in the future.
Cuomo is credited by a number of organizations associated with the workers compensation system for his reforms and its positive effect on the NY workers compensation costs.