Any savings to New York employers resulting from recent workers' compensation legislation will depend on the guidelines for implementation that are developed to control cost, an insurance executive said.
Joseph Wells, director of the workers' compensation line of business for Zurich North America, based in Schaumburg, Ill., made his comments today during a Web seminar put on by Willis Group Holdings insurance brokerage in New York.
Mr. Wells said a number of milestones must be accomplished before it can be ascertained whether the New York reforms will meet their objective. The reforms' effectiveness, he said, will depend upon the rules developed by the state's Acting Superintendent of Insurance Eric R. Dinallo.
Mr. Wells called the reforms passed last month by the state legislature "landmark legislation" because they marked a compromise between labor and employers.
He said one of the first indications of the new law's effectiveness will come on May 15 when the state's Workers' Compensation Rating Board makes its first rate filings. Additional filings in July should give a further sign, added Mr. Wells.
Long-term reductions, however, will depend upon the guidelines used to cap permanent and partial disability payments, he said.
If Mr. Dinallo chooses to use recognized professional guides, such as those produced by the American Medical Association, Mr. Wells said it would go far toward controlling costs in the long term. He called this part of an objective rating process.
The guideline rules, he said, are expected to be introduced by April 27 by Mr. Dinallo. However, it will still be up to the state's Workers' Compensation Board to adopt the guidelines.
There are other fee schedules concerning prescriptions, prosthetics and other medical-related items that need to be developed to help drive down the cost of workers' comp, he noted.
Implementation of the guidelines are essential to achieving the long-term goal of reducing worker's comp premiums by 10-to-15 percent over the coming years, said Mr. Wells.
A replay of the Webcast is available with the conference code PB6826882 at https://e-meetings.mci.com/nc/join
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