Governor Andrew M. Cuomo has announced that New York state employers will see a reduction in workers’ compensation premium rates for the first time in four years.
Policyholders will see a decrease of 1.2 percent, the first reduction since 2008.
The rate reduction is a result of efforts by the governor’s administration over the past 18 months to modernize, improve efficiency and decrease waste in the workers’ compensation system.
“For years, the workers’ compensation system has been too costly for businesses and ineffective for injured workers,” said Cuomo. “With the new measures implemented by the state, and our continued work together with the business and labor communities, we will remain on track to create a system that works better for both employers and employees.”
Originally, the New York Compensation Insurance Rating Board recommended a cost increase in their annual loss cost filing. However, after reviewing all the filings and written submissions, the board determined to cut costs.
Benjamin M. Lawsky, superintendent of financial services, believes Cuomo is leading New York in the right direction for all businesses, both large and small, throughout the state.
“This is the right decision on rates at the right time,” said Lawsky.
Cuomo also announced that the last measures of the 2007 Workers’ Compensation Reform Law, which secured necessary benefit increases for injured workers and cost reductions for businesses, have now been fully implemented by the state. The Workers’ Compensation Board will now focus on creating a new set of guidelines to help modernize its systems with technology and to continue reducing waste and abuse in the system.
“The cost of workers’ compensation coverage remains a significant competitiveness issue for New York State business,” said Heather Briccetti, CEO of the New York State Business Council. “We look forward to working with the administration and other stakeholders on next steps in improving the system.”