Measures included in the state budget will reduce costs for New York businesses and governments under the state’s workers’ compensation system by 26 percent, Gov. Andrew Cuomo said Wednesday.
Businesses and governments will save $300 million in annual expenses and save self-insured employers $500 million in one-time workers’ compensation assessments, a statement from Cuomo’s office said.
The Business Relief Act, part of the 2013-14 budget, cuts assessments to employers to 13.8 percent from 18.8 percent, the largest reduction since 1998, the statement said.
“The improvements in the workers’ compensation system will deliver major savings for businesses across the state, giving them the opportunity to use that extra money to make investments and create jobs in their communities,” Cuomo said in the statement.
In addition to saving $800 million this year, the measures will continue to save $300 million each year, he said.
The measures also simplify the system used to calculate assessments, resulting in the one-time savings of $500 million in claim reserves for self-insured employers including most municipalities and school districts, the statement said
“It is imperative that New York continue to find ways to lower the cost of workers’ compensation insurance,” Brian Sampson, executive director of the Unshackle Upstate coalition of businesses, said in the statement.
“Gov. Cuomo and his team, along with members of the workers’ compensation board, have been actively working with the business community to find significant cost-saving measures that do not impact the care provided to injured workers. The reforms enacted today are just another step in process. We look forward to continuing to work with all parties to lower the cost of this required insurance.”
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