New York tops costs ranking

New York has surpassed California as having the highest workers compensation costs in the country, according to a nationwide report by Oregon regulators, but officials in both New York and California questioned the results.

The biennial study by the Oregon Department of Consumer and Business Services, released Oct. 10, ranks all 50 states and the District of Columbia based on premium rates in effect Jan. 1, 2018. Researchers also compared each state’s rates with the national median rate of $1.70 per $100 of payroll.

New York now ranks No. 1, with costs at 181% of the median costs nationwide, up from 154% in 2016, according to the report. The state spends $3.08 of $100 of payroll in workers comp costs.

“The Oregon study is misleading and does not take into account the recent transformation of workers compensation in New York. Insurance rates were cut 11.7% this year and 4.5% in 2017, immediately benefiting employers,” a spokeswoman for the New York State Workers’ Compensation Board wrote in an email.

California’s costs are 169% of the median, down from 176% two years ago. It now spends $2.87 for every $100 of payroll.

“Oregon’s study is based on the industrial mix in their state and does not reflect actual costs in California’s workers compensation system,” a spokesman in the California Division of Workers’ Compensation wrote in an email. “That said, the study accurately notes that since the 2012 workers’ compensation reforms were enacted, California has seen a reduction in costs to employers while increasing injured workers’ benefits and improving access and quality of evidence-based care.”

Costs for New Jersey, consistently No. 3 in the annual rankings, increased to 167% of the median, up from 158% in 2016. It spends $2.84 for every $100 of payroll.