NU Online News Service, July 18, 12:29 p.m.EDT

New York has ordered a cut in workers compensationinsurance rates by 1.2 percent despite an original recommendationfrom an independent advisory board for an increase.

The reduction will be the first since 2008, according to astatement from Gov. Andrew Cuomo.

The decision was actually made by Benjamin Lawsky,superintendent of the state Department of Financial Services.

He rejected an application by an outside-advisory board for an11.8 percent increase in manual loss costs.

Lawsky based his decision partly on testimony at a June publichearing by officials of the New York Committee for OccupationalSafety and Health. Its officials testified that all changesanticipated in 2007 have been implemented and accounted for andthat a filing for a rate increase by the New York CompensationInsurance Rating Board, a non-governmental rate serviceorganization, overstates the current rate need.

An official of the state Workers' Compensation Board alsotestified at the hearing that that the filing overstated futurecosts because it does not adequately reflect savings from 2007reforms.

The Workers’ Compensation board official said that although thevast majority of the 2007 legislation's medical cost-controlmeasures were implemented almost immediately, the medical-treatmentguidelines were not fully implemented until 2010 and are continuingto produce additional savings.

The 2007 law mandated benefit increases for injured workers andcost reductions for businesses.