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State’s Worker's Compensation System Savings Announced

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State Senator Fred Akshar joined local business leaders and The Business Council of New York State at Willow Run Foods to highlight over a billion dollars in savings for New York State employers due to the workers' compensation reforms passed in 2017.

New York Compensation Insurance Rating Board recommended an 11.7 percent reduction in loss cost rates, which are the basis for setting workers’ compensation premiums for 2019. This week, the New York State Department of Financial Services approved the reduction, effective October 1, 2018.

The newly approved 11.7 percent reduction will result in significant 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.

Senator Fred Akshar said, “Real solutions come from working together at the ground level. When I first took office, my Small Business Advisory Council identified Workers' Compensation costs as one of their biggest problems in New York's abysmal business climate - New York has some of the highest Workers' Compensation costs in the nation. 

The reforms passed in 2017 capped classification of Maximum Medical Improvement, reigning in the high costs associated with the needless delay of claim finalization. The adoption of new Impairment Guidelines for scheduled loss of use awards, which eliminate certain unnecessary monetary bonuses associated with certain injuries and treatments are set to render savings to the system. 

Heather C. Briccetti, Esq., president and CEO of The Business Council of New York State, Inc., said “These savings are the culmination of months of hard work and advocacy by The Business Council and our members and would not have been achieved without the relentless push by key legislators including Senator Fred Akshar. 

Jennifer Conway, President & CEO of the Greater Binghamton Chamber of Commerce, said" The reform is having a snowball effect and has now saved nearly 1.5 billion dollars annually in insurance premiums since it was passed. This is a huge win for the businesses and the citizens of New York State. We need to continue to fight for reforms such as this to create a stronger business environment.”

Gwen Kania, President & CEO of the Tioga County Chamber of Commerce, said “We appreciate the legislative action taken to lower Worker Compensation rates. Lowering the costs of doing business within the New York State is important to all of our businesses.”

Steve Craig, President & CEO of Commerce Chenango, said, "The successful effort to roll back Workers Comp costs is a powerful example of how the interests of businesses across a wide range of industries can be aligned and focused to achieve a meaningful public policy result."

Ray Pucci, President of the Delaware County Chamber of Commerce, said “ These reductions will allow Delaware County entrepreneurs, who often endure additional regulations and costs associated with being in the NYC watershed, to invest these savings in their businesses. We look forward to working with the Senator to continue strengthening our local economy.”