MACNY - Reform the Workers' Compensation System

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Home > Government Relations > Public Policy Agenda > Reform the Workers' Compensation System

Reform the Workers' Compensation System

The Issue:

New York’s workers’ compensation costs are far above average, and like so many years in the past, this issue has again been cited as the number one concern of manufacturers. New York’s system has negatively impact the competitiveness and viability of the manufacturing sector. Workers’ compensation costs in New York are above average because New York had failed to enact critical reforms— reforms that have been proven to cut costs in other states.

In 2007, with the help of MACNY, comprehensive reform was passed into law. Many of the reforms that MACNY had been advocating for were adopted. Along with reforms, a phased-in benefit for workers was enacted. Even with the passage of reform legislation, more work on this area will be necessary to ensure the promised 10 to 15 percent savings is achieved. MACNY will focus its efforts on effective implementation and monitor outcomes to ensure the costs of workers compensation does decrease as promised.

MACNY believes that even with workers’ compensation system reform, the best way to avoid added costs is through safety programs. By keeping accidents to a minimum, employers can reduce costs. Through our Safety Council and other programs, MACNY will continue to bring educational programs to manufacturers that focus on safety. However, systemic reform is also needed to address the increasing burden placed on manufacturers by workers’ compensation costs.

In Albany:

MACNY will monitor progress to ensure that the promised outcomes of recently passed workers’ compensation reform are achieved. Reforms that must be implemented include:

· Reduction in workers compensation premiums by ten to fifteen percent.

· Implementation of duration limits on partial disability benefits and adoption of a system of scheduled benefits per disability. It is estimated that benefits will be maxed at eight years or less for more than 90 percent of cases, and that the average PPD claimant will get 344 weeks of benefits upon classification.

· Adoption of legitimate medical guidelines to determine additional levels of impairment or degrees of disability in partial or permanent cases.

· Creation of new programs designed to help injured workers get prompt medical attention and back to work.

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