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 State: NY

 

Approved Rate Increase Will Raise Employer Costs 2.8%

 

New York workers' compensation rates will increase an average of 2.8% on Oct. 1 under an order approved by the New York Department of Financial Services.

 

The department approved an average increase in loss costs of 9.5%, but legislation approved by Gov. Andrew Cuomo earlier this year reduces assessments by 6.7%, leaving the net impact on employers' bottom lines much smaller.

 

The New York Compensation Inspection Rating Bureau had recommended a 16.9% rate increase.

 

But Financial Services Superintendent Benjamin Lawsky approved an alternative actuarial analysis prepared by his department instead, according to an order and decision dated July 12. The department later amended the order and posted a much shorter version on July 15.

 

The New York Workers' Compensation Alliance, which advocates for injured workers, issued a statement lauding the Department of Financial Service's decision to hold the line on rate increases.

 

The Alliance said the increase recommended by NYCIRB would have raised employer costs by $1 billion annually.

 

The Alliance testified against NYCIRB's proposal during a June 25 hearing.

 

"Workers' compensation costs in New York state have declined significantly in the past two decades and workers' compensation is also a declining portion of overall employer costs," Alliance Chairman Robert Grey said in the statement. "The DFS decision supports these facts."

 

Source: WorkCompCentral

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