Following a period of accelerating workers compensation (WC) costs (benefits; claim related expenses; and assessments) in New York from 2000 to 2007, the state enacted legislation in 2007 with the expectation of materially reducing costs. Rather than decreasing costs, the 2007 legislation ultimately led to higher costs that exceeded pre-legislation levels.
Oliver Wyman’s analysis of countrywide WC costs indicates that costs in New York are currently at levels commensurate with WC costs in California. These two jurisdictions represent the two most expensive state jurisdictions in the United States.
This paper will:
- Briefly review the 2007 legislation;
- Offer an explanation as to why both claim costs and assessments have increased since 2007; and
- Discuss potential future cost levels.
