The Business Council of New York State Inc. has touted the newly approved 11.7 percent reduction in loss cost rates, which are the basis for setting workers’ compensation premiums for 2019, as being significant toward workers’ compensation savings for most New York employers next year.
This reduction, coupled with the 4.5 percent rate cut achieved in the first year of the 2017 reforms, means overall system costs will be reduced by upwards of one billion dollars, according to a press release issued by the council.
“Thanks to the rate approval by the Department of Financial Services, employers of all sizes and from all regions of the state will see a significant reduction in their workers’ compensation costs,” said Heather C. Briccetti, president and CEO of The Business Council of New York State Inc, in the release.
The 2017 reforms capped classification of Maximum Medical Improvement, reigning in high costs associated with the delay of claim finalization. The adoption of new Impairment Guidelines for scheduled loss of use awards, which eliminate monetary bonuses associated with certain injuries and treatments, are set to render savings to the system. The anticipated adoption of a pharmaceutical formulary will likely do the same, the council stated in its release.
The reforms also enhanced coverage for injured workers through decreasing the threshold for the permanent partial disability cap “safety net”. Additionally, the reforms removed the requirement that an injured worker, who was entitled to benefits and attached to the labor market at the time of classification, demonstrate attachment to the labor market.
“New York businesses face significant challenges in their ability to grow and hire more workers,” Briccetti added in the release. “The combination of an uncompetitive tax structure, unfair and unnecessary regulatory burdens, and rising health care costs have pushed many state businesses to the brink. That is why these reforms, and the savings that come with them, are so significant.”
Source: The Business Council of New York State Inc.
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