New York businesses could soon see some slight relief in workersâ compensation premiums, according to an announcement from Gov. Andrew M. Cuomo.
The governorâs office released a statement Monday saying that the New York Compensation Insurance Rating Board, a non-governmental rate service organization, has submitted an overall workersâ compensation rate decrease of approximately 4.5 percent for rates beginning Oct. 1, 2017. If approved, the premium decrease equates to a savings New York employers about $400 million this year in workersâ compensation premiums.
In its rate filing, CIRB attributed the reduction in premium rates to certain cost savings measures passed as part of the 2018 budget and general system savings spearheaded by the New York State Workersâ Compensation Board, according to the governorâs statement.
âThe reforms to the Workersâ Compensation system in this yearâs budget will help New York businesses cut costs â enabling them to further reinvest, grow and create more jobs across the state,â Cuomo said. âWith this rate decrease, New York is providing real savings to businesses helping to make them more competitive while strengthening protections for injured workers at companies across the state.â
The rate submission must still be reviewed and approved by the Department of Financial Services. If approved it would become effective October 1, 2017.
New York Senate Majority Leader John J. Flanagan said workersâ compensation reforms were part of the budget negotiations earlier this year.
Workersâ compensation premium rates are determined on an annual basis and take into account recent claims experience as well as implementation of any new policies and procedures. The 2018 New York Budget specifically addresses cost by applying limits to temporary disability payments prior to a permanency award, while providing an exemption process for the most seriously injured.
âGovernor Cuomo and the Legislature have successfully managed to rebalance the workersâ compensation system to provide better protections for injured workers and provide much needed relief to New Yorkâs businesses,â said Kenneth J. Munnelly, chair of the Workersâ Compensation Board.
The budget also includes better protections for injured workers by:
- Expanding the safety net for seriously injured workers, so more are eligible to apply for reconsideration for lifetime benefits when their benefit caps are set to expire.
- Ensuring injured workers who are out-of-work and not receiving benefits will get a hearing within 45 days.
- Providing relief for first responders exposed to extraordinary stress in emergency situations.
- Strengthening the administrative tools available to the Board in its efforts to provide swift and appropriate delivery of benefits to injured workers.
The budget requires the Workersâ Compensation Board to publicize new permanent impairment guidelines to reflect advances in modern medicine that result in better outcomes. Additionally, to ensure that injured workers receive high quality, cost effective medications, the board will establish a prescription drug formulary.
According to the governorâs office, the reforms build on his continued commitment to improve New Yorkâs workersâ compensation system to more effectively serve the needs of injured workers and employers.
Signed by the Cuomo as part of the 2013-14 budget, the Business Relief Act provided hundreds of millions in savings for New York businesses by fundamentally restructuring the way that workersâ compensation assessments were made.
Cuomo also launched a comprehensive âbusiness process re-engineeringâ to re-imagine the workersâ compensation system. As part of that effort, the Workersâ Compensation Board is close to launching virtual hearings, which will modernize and virtualize the Boardâs present hearing environment and allow injured workers to participate in a hearing at a location that is most convenient for them, even their home, the statement said.
In addition, the Workersâ Compensation Board has developed new processes to ensure benefits are delivered more timely by utilizing alternative means to resolve disputes. This allows the board to preserve hearing time for more complex cases with legal disputes. The board has also generated a dramatic decline in inventory of pending workersâ compensation appeals and the length of time it takes for those appeals to be resolved. The prompt processing of appealed claims aids both workers and employers, by making benefits and treatments available more quickly and lowers litigation costs.
Source: New York Office of the Governor