N.Y. Gov. Seeks WC Reforms

By Mark E. Ruquet

NU Online News Service, March 24, 2:10 p.m. EST?New York's governor outlined his plan for reforming the state's workers' compensation system, which he said would reduce costs for businesses by 15 percent and increase benefits to injured workers from its current maximum of $400 to $500 per week.[@@]

"In 1996, we worked together to achieve historic and long overdue reforms to the workers' compensation system, which have already reduced costs for businesses by nearly one-third on average," he said in an address yesterday before the state's Business Council in Albany, N.Y.

However, he added, workers' comp represents "one of the biggest costs for businesses, and if left unchecked can be an impediment to creating new jobs. That's why we are taking the next step and advancing dramatic new reforms that will further reduce these costs for New York's employers."

To help rein in costs, the governor's proposal would expand the types of injuries for which benefit levels are scheduled according to the severity of the disability. This would include limiting the disability payments for lifetime partial disability to 500 weeks, or close to 10 years.

The plan would also implement a pharmaceutical fee schedule, reduce assessments for the Second Injury Fund from 150 percent to 125 percent, and improve access to services.

Those claimants injured while in the act of committing a crime would be denied benefits. It would also give insurers the right to discontinue benefits to claimants convicted and jailed for a crime.

Leaders from the state's two major independent insurance agent and brokers groups said they applauded the governor's proposals.

"We are delighted that the governor has made workers' comp reform a key part of his legislative activity this year," said Richard A. Poppa, president and chief executive officer of the Independent Insurance Agents & Brokers of New York, based in Syracuse.

"We think meaningful reform is necessary to make New York's workers' comp market more viable and these [proposals] are steps in the right direction," said Thomas J. Derella, president of the Professional Insurance Agents of New York and president of Kingstar Company Inc. in Kingston, N.Y.

Both said they have not seen the specifics of the governor's bill, but believe it contains many of the elements necessary to bring reform to the system.

Mr. Derella and Mr. Poppa said a key element to the package is the limitation on permanent limited disability payments. Mr. Poppa said he believed New York is only one of three states left that does not have a cap on such payments. "That just eats up a significantly disproportionate amount of the workers' comp benefit," he said.

However, he acknowledged that the bill would be tough to pass if it does not have a measure for those with limited disabilities to receive reasonable benefits and rehabilitative services.

"Our intent would not be to do anything other than to create an environment where an injured worker receives a reasonable benefit and also is given all the opportunity and rehabilitative services to get back to work," Mr. Poppa noted. "We are very supportive of doing those things that get a worker back to work."

Mr. Poppa added that the association will be working through the New York Workers' Compensation Network, a coalition of employers in the state, to push for reform.

"We are going to work to get our system back into a position where [insurance] companies are going to want to do business in New York instead of running away from New York," he said.

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N.Y. Gov. Seeks WC Reforms

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