New York Cuts Workers' Comp Rates by 1.2 Percent.
NU Online News Service, July 18, 12:29 p.m. EDT
New York has ordered a cut in workers compensation insurance rates by 1.2 percent despite an original recommendation from an independent advisory board for an increase.
The reduction will be the first since 2008, according to a statement from Gov. Andrew Cuomo.
The decision was actually made by Benjamin Lawsky, superintendent of the state Department of Financial Services.
He rejected an application by an outside-advisory board for an 11.8 percent increase in manual loss costs.
Lawsky based his decision partly on testimony at a June public hearing by officials of the New York Committee for Occupational Safety and Health. Its officials testified that all changes anticipated in 2007 have been implemented and accounted for and that a filing for a rate increase by the New York Compensation Insurance Rating Board, a non-governmental rate service organization, overstates the current rate need.
An official of the state Workers' Compensation Board also testified at the hearing that that the filing overstated future costs because it does not adequately reflect savings from 2007 reforms.
The Workers' Compensation board official said that although the vast majority of the 2007 legislation's medical cost-control measures were implemented almost immediately, the medical-treatment guidelines were not fully implemented until 2010 and are continuing to produce additional savings.
The 2007 law mandated benefit increases for injured workers and cost reductions for businesses.
|Printer friendly Cite/link Email Feedback|
|Publication:||Property and Casualty 360|
|Date:||Jul 18, 2012|
|Previous Article:||Senate Looks to Raise Crop Insurance Premiums for Some Farmers.|
|Next Article:||New York High Court May Take Up Case Against Ex-AIG Chief Greenberg.|