7/20/2004
State Insurance Department acts on workers' comp rate
New York's workers' compensation premiums will not increase next year.
The state Insurance Department announced that decision late July 15. But
assessments, a tax on premiums that all employers must pay, will increase 6
percent this year.
Business Council President Daniel B. Walsh said New York's business community
will remain focused on achieving essential cost-cutting reforms.
"Our priority remains reforms to reduce costs," Walsh said. "Constraining growth
in costs is a start, but reducing those costs is essential. We know what reforms
will do that, and now the Legislature must enact them.
"We call on the state Legislature to act immediately to enact the kinds of
sensible reforms that have been proposed by Governor Pataki, Senator Thomas
Libous, and Assemblyman Robin Schimminger," he added.
The Cortland County Chamber of Commerce was among many state business
associations joining the Business Council in opposing a proposal to raise
premiums by nearly 30 percent. It is estimated that the average cost of a
workers' comp case in New York is already 72 percent above the national average.
In testimony at a state Insurance Department hearing June 30 on workers'
compensation premiums in New York State, The Business Council said the threat of
another hike in employers' costs strengthened the already powerful case for
workers' compensation reform.
"Until we reform the system itself by easing the fiscal burden on the employers
of the state, we will find ourselves here year after year addressing the issue
of the rates," The Council's testimony said.
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