New York Gov. George Pataki has vetoed a bill (A.8713-B) that insurers say would have increased costs in the state’s workers compensation system.
“New York’s businesses and workers need comprehensive workers’ compensation reform to lower costs, create jobs and make New York more competitive,” said Gary Henning, American Insurance Association assistant vice president, Northeast Region. “AIA opposed this bill because it would have increased costs while providing no reform.”
The measure would have increased the pre-authorization threshold from $500 to $1,200 for special workers’ compensation medical services, such as MRIs and other high tech treatments. It also would have decreased the reserve requirements for self-insured trusts.
“In the current system, the pre-authorization process is one of the few ways unnecessary and sometimes fraudulent treatments can be prevented,” said Henning. “If changes are needed they should be part of a comprehensive reform bill.”
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