Two more self-insured workers’ compensation groups in New York will close over the next several months, bringing the year’s tally to five, as officials continue to enforce stricter financial standards.
The Retail & Wholesale Industry Worker Compensation Self-Insurance Trust, with 23 active and 47 inactive member businesses, and the New York Healthcare Facilities Workers Compensation Self-Insurance Trust, with 71 active and 135 inactive members, will both terminate on July 31, 2006.
The funds are being closed because their assets do not cover at least 90 percent of their liabilities, as is required by the New York Board of Workers Compensation, according to Jon Sullivan, spokesman. They will still be responsible for outstanding claims.
In addition, the Manufacturing Self Insurance Trust Fund will voluntarily close on Aug. 31 rather than raise its rates.
The closing of these groups follows the shuttering in March of the Provider Agency Trust for Human Services and the Manufacturing Industry Workers Compensation Self-Insurance Trust.
The retail industry trust is managed by Consolidated Risk Services, which also managed the two closed in March. Hamilton Wharton manages the healthcare trust and N.Y. Compensation Managers Inc. handles the Manufacturing Self-Insurance Trust.
According to Sullivan, self-insured trusts have been under closer scrutiny since 2001.
“The new standards have caused some to reconsider their options,” he said. Employers in the trusts that are closing will have to seek new coverage, either through private carriers or the New York State Insurance Fund.
Topics New York Workers' Compensation
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