New York, NY (PRWEB) November 14, 2012
The New York Workers’ Compensation Alliance, a coalition of injured workers and those committed to protecting the rights of injured workers, today released a report revealing that workers’ compensation costs in New York State have declined dramatically in the past two decades and that workers’ compensation is also a declining portion of overall employer costs.
The report, released at a time when there is growing focus on the issue, shows that workers’ compensation reforms in 2007, combined with other administrative and regulatory initiatives, reduced worker access to benefits while also reducing claim costs. The report shows that costs have actually declined by a full 30 percent during the past 18 years.
The report also demonstrates that the cost of workers’ compensation is comparable to similarly situated states, such as Connecticut, California, Illinois and New Jersey, and that costs could be even lower if insurance companies were required to be transparent and verify the projected costs that they use to justify rate increases. At present, insurance carriers submit unaudited “projected cost increases” as a basis for premium increases that unfairly impact employers.
The NYWCA report -- which features raw data and charts from the New York Compensation Insurance Rating Board, the National Council on Compensation Insurance and the NYS Department of Labor, among other sources -- demonstrates that workers’ compensation employer costs, as a percentage of total compensation, have dropped from 1.6 percent in 2001 to 1.5 percent in 2011.
“Business and insurance carrier interests repeatedly claim that workers’ compensation is high cost to New York employers while at the same time blaming injured workers for these costs – but this simply isn’t true,” said Robert Grey, Chair of NYWCA. “The fact is that workers’ compensation is cost-efficient, and any increased costs in the system have come from excess insurer profit.”
Grey said that there is a glaring lack of transparency and accountability on behalf of the insurance carriers, and that this has, and will continue to, create unnecessary costs for state employers.
To read the full report, please follow this link: http://www.nyworkerscompensationalliance.org/.