December 12, 2005
by Dylan Skriloff
Governor Pataki is looking to make further inroads in the reform of New York’s worker’s compensation system. In 1996 the Governor achieved a landmark reform of the bill, and now he has plans to take it further. He said his plan will cut employer’s costs by 15 percent while increasing maximum benefits for injured workers by 25%.
The Governor’s proposal would:
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Reduce the Second Injury Fund assessment.
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Create a system of tiered benefit levels for injuries that are not currently scheduled.
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Authorize comprehensive free schedules for medical goods and pharmaceuticals.
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Improve coordination of anti-fraud efforts.
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Adjust the assessments from 150 percent of the previous year’s disbursements to 115 percent, thus saving employers more than $190 million.
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Reduce frivolous claims and expanding the Alternate Dispute Resolution.
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Establish objective medical guidelines to evaluate injuries and illnesses in workers’ comp cases.
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Allow carriers or self-insured employers to contract with providers to perform diagnostic tests, x-ray examinations, MRIs or radiological exams and require claimants to use facilities within that network except in emergencies.
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Scott Liebert of CLG, Financial said these proposals are long overdue for the state and all positive. He does not foresee much resistance, the reason its taken so long for things to get done is simply because the state’s legislature works at a slow pace, he said.
Business Council of New York President Daniel B. Walsh was pleased with the Governor’s announcement, as the council has long been pushing on this issue.
"We look forward to working with the Governor and the Legislature in a good-faith effort to bring the comp system more in line with that of our competitor states," he said.
For more information on New York’s workers comp, see our July 28, 2005 newsletter.
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