Posted On: May 13, 2008, 4:15 pm CDT

Posted By: John

Everyone who posts here is going to have knowledge of the workers comp system. They wouldn't have even read the article if they didn't. I for one, am not a "plant" and I never claimed not to have a vested interest in NYSIF (that should be apparent if you've read my posts). NYSIF is not trying to become the sole source of WC. When have you last seen a NYSIF commercial? Most people are under the misconception that NYSIF was created as the "carrier of last resort". This is not true. NYSIF was created to be a competitive force in the marketplace to keep the prices of this mandatory insurance as low as possible. Private Insurance companies goals are to set prices as high as they can to maximize shareholder profits. This isn't wrong. It's what all private for-profit companies do. The lawmakers simply didn't want this rule applied to WC. NYSIF, by law, sets it's prices at the lowest possible rates consistent with the maintenance of a solvent fund. Now private companies must either beat NYSIF's price or let NYSIF write it. Either way NYSIF lowered the price for the insured. What this bill will do is limit NYSIF's stabalizing role in the WC market. In other words, this will let the for-profit insurance co's do what they are supposed to do, maximize profits. Higher prices for NYS business's for a MANDATORY insurance that they cannot opt out of. Based on all the insurance company scandals of the last few years, I think the only result of this bill will be much higher premiums for the average NY business.