New York Gov. Eliot Spitzer, at a crowded ceremony today in Albany, signed a workers' compensation reform bill to fix what he referred to as a "long broken" system.
The measure, worked out by the governor's office with the legislature and representatives from business and labor, has been welcomed by insurance interests, who have at the same time cautioned that many of its details have been left to study groups to settle.
Legislators from both parties voiced support for the new law as the bill was signed.
Under the legislation, which the Democratic governor made a top priority in his new administration, injured worker benefits will increase for the first time in more than a decade, while reducing employer costs by a projected 10-to-15 percent. Weekly benefits will increase from a minimum of $40 to $100, and the maximum will rise from $400 to $500.
In a statement released after he put his signature on the bill, Gov. Spitzer noted that New York's workers' comp premiums have been among the highest in the nation, despite low weekly benefits for injured workers.
"Workers' compensation reform is a critical component of restoring the state's competitiveness. Today, New York is reversing a trend that hampered business growth for years, and we are better protecting workers in the event of job-related injury," he added.
In a letter written to Acting Insurance Superintendent Eric Dinallo, Labor Commissioner Patricia Smith and Workers' Compensation Board Chair Donna Ferrara, he said the new law will reform "a long-broken workers' compensation system."
The governor also announced that he has asked Mr. Dinallo to ensure that savings in the workers' comp system are translated into reductions in insurance premiums.
Under the bill, the superintendent, with assistance from the labor commissioner and workers' comp board chair, is required to undertake a variety of actions, including:
o Collecting and assessing data relating to worker-related injuries and claims.
?o Streamlining the claims review process, with input from an advisory committee from business, labor and the legislature.
o Designing new diagnostic and treatment protocols for medical professionals, with advice from a study committee.
o Developing training materials to assist administrative law judges in making consistent case determinations.
The legislation drew expressions of support and praise Assembly Speaker Sheldon Silver, D-Manhattan, Senate Majority Leader Joseph Bruno, R-Brunswick, Kenneth Adams, president of the New York State Business Council, and Denis Hughes, president of the New York State AFL-CIO–among others.
Among other items in the new law is a provision closing down the Special Disability Fund, which is now financed by assessments passed through to employers, which will be closed to new claims.
The fund was initially set up to help injured workers who were war veterans with prior injuries. According to the governor, it "is now instead used by some insurance carriers as a costly loophole by which they transfer claim costs to the entire industry.
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