N.Y. Task Force Calls For Central Comp Database

A task force studying reform of New York's workers' compensation system has recommended that all the state's comp data be put in a central information bank to analyze, benchmark and improve its operation.

The report, which Insurance Superintendent Eric Dinallo sent to Gov. Eliot Spitzer, called for a secure information bank to correlate and translate detailed medical and other claim-related costs, as well as measurements of quality of access to care, into a common language.

According to an announcement yesterday from Mr. Dinallo, this could be used to provide policymakers with information necessary to make proper policy decisions.

The study group that produced the report was the result of the state's Workers' Compensation Reform Act of March 2007. That measure, Mr. Dinallo said, has resulted in an estimated savings for New York businesses of $1 billion this fiscal year.

The report summarizes currently available comp system data, and benchmarks the system. It notes, for example, that the data indicate New York has a competitive market for comp coverage, and that, pre-reform, overall claims were decreasing, but the cost-per-claim was growing significantly.

"As Gov. Spitzer said when he signed the reform act, there can be no accountability without data," Mr. Dinallo said.

"Implementing the recommendations contained in this Workers' Compensation Reform Task Force report will improve and refine industry-wide data collection, research and analysis so that we may track costs, monitor the system and make appropriate policy judgments, " he added.

The Task Force has proposed New York's first-ever workers' comp medical treatment guidelines, and recommended measures to slash the time for resolving disputed cases.

According to Mr. Dinallo's announcement, this should significantly accelerate the delivery of benefits to injured workers.

Other recommendations resulted in a revamped ratemaking process, including a new "loss costs" method of determining premiums that should increase ratemaking transparency and price competition in the New York market.

"Gov. Spitzer noted last March that workers' compensation reform efforts had been hampered by a lack of basic data," Mr. Dinallo said. "The governor asked for annual data reports beginning this March so that never again will a simple task like calculating the cost of increasing benefits be made difficult because data is unavailable or unusable."

Other Task Force recommendations include creating an independent research division at the Workers' Compensation Board (WCB) reporting directly to the WCB chair. This division would use the data collected both to conduct ongoing research and for special projects.

That research, the Task Force recommended, should be guided by the advice of a research advisory committee, appointed by the governor and including representatives of the legislature, state agencies, labor, business, academia and industry.

The research division should explore the potential of building a partnership with a university in New York, the report said.

The Workers' Compensation Board and the Insurance Department would be able to better collect relevant workers' comp data from various sources if the report's recommendations are implemented, the report said.

The report was prepared by the Insurance Department's Workers' Compensation Reform Task Force, led by Executive Director Bruce Topman and Project Coordinator Elizabeth Miller.

The task force met with representatives of the legislature, organized labor, business and other state agencies about various aspects covered by the report.