The Governor of New York has announced that New York State will institute a reduction in the premium rates for workers compensation. Governor Andrew M. Cuomo discussed the details of the reduction, the first time in four years. The Governor also requested the original recommendation for an increase be reconsidered to reduce the proposed increase.
This announcement will allow employers in New York to continue being competitive businesses. A decrease of 1.2 percent is the first reduction since 2008. Along with the reduction announcement, the Governor has stated the last measures of the Workers Compensation Reform Law from 2007 have been fully imposed by the state. This law secured benefit increases for injured workers while reducing the costs for businesses.
Governor Cuomo stated the workers compensation system has been ‘ineffective’ for injured workers and has become too expensive for businesses to afford. The new laws will help to develop a better system for both the workers and their employees, allow the state to remain competitive in business on a global scale.
The proposed cost increase was requested by the New York Compensation Insurance Rating Board which is a rate service organization not part of the government. After careful review of information, the administration felt the increase would not be needed. Workers compensation rates are determined on an annual basis based on a number of factors.
The Chair of the NY Workers Compensation Board, Robert Beloten, stated that before the reform, workers were not getting enough lost wage benefits despite the medical and indemnity costs that were uncontrolled. The system essentially did not work for the injured workers in New York or for businesses. Beloten also stated the Board will continue to work to ‘weed out waste, fraud, and abuse in the system’.