New York workers compensation reforms to result in savings: Analysis
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Workers compensation reforms in New York Gov. Andrew Cuomo's budget legislation are expected to result in net savings for employers, according to a New York Compensation Insurance Rating Board analysis.
In January, the governor announced that his 2013-2014 budget and legislative agenda would call for increased workers comp benefits and system reforms.
Those measures are included in budget legislation introduced by the governor in the form of Senate Bill 2605 and Assembly Bill 3005.
The New York-based NYCIRB said Monday that it estimated the governor's legislation will increase future workers comp loss costs 4.4% to 5.3%. It also estimated that the closure of a Reopened Case Fund will result in $1.1 billion to $1.6 billion in unfunded liabilities for private insurers and the State Insurance Fund.
“The increase in loss costs, however, will be largely offset by a reduced Reopened Case Fund assessment,” the NYCIRB said in its analysis. “Combined with the anticipated long-term savings from the elimination of (an) Aggregate Trust Fund, which cannot be quantified at this time, this bill is expected to result in overall net savings in employers' costs.”
The NYCIRB's analysis is available here.
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