According to recent sources, workers’ comp reform in Florida and New York are getting much needed attention as lawmakers are pushing for increased legislation to control costs this year. For the thousands of employers who call New York and Florida home, this is welcomed news. Workers’ compensation claims have steadily risen over the last two decades, and now with healthcare reform adding financial and administrative burden to employers, many are looking for the light at the end of the tunnel.
What’s Happening with Workers’ Compensation Reform in New York and Florida?
It’s been reported that Florida’s insurance commissioner Kevin McCarty has rejected a one percent rate hike for workers’ compensation insurance premiums that the National Council on Compensation Insurance (NCCI) proposed. In New York, Ellen Melchionni, President of the New York Insurance Association (NYIA) indicated that Governor Andrew Cuomo has, “acknowledged that additional work needs to be done related to workers’ compensation insurance.” (Source: Property Casual 360 Degree)
The Cost of Workers’ Compensation Claim Management in New York and Florida
Some of the cost drivers of workers’ compensation claims stem from a lack of market competiveness, which makes it harder for workers’ compensation insurance companies to set up shop or offer lower cost options to employers. Over the last several years, there have also been escalating costs for occupational medical care, employee wages and health care insurance premiums. Fraudulent workers’ compensation and disability claims have also caused the price of insurance to skyrocket. Employers are simply doing their best to keep up with regulations and the administrative aspects of each new claim.
Getting Florida and New York Workers’ Compensation Under Control Again
While Florida looks at a possible rate increase of as much as 0.7 percent for Florida workers’ compensation insurance, it’s not clear if New York will follow suit. One thing is on the horizon in terms of health care reform and that is more emphasis will be placed on prevention of injuries and illnesses in the workplace. While professional employer organizations (PEOs) can be a source of support, the entire medical community needs to come together to standardize medical treatment guidelines, pharmaceutical schedules, and pre-authorization gateways to ensure employees are getting the right treatment and follow up to reduce costs.
One thing is positive – workers’ compensation law in New York and Florida is undergoing close scrutiny by legislators going into 2014 and beyond. Look for updates in the very near future that will help employers regain control over injury and illness claims.
Navigate Worker’s Compensation Insurance Easily with SourceOne Partners
Need help getting worker’s compensation insurance to ease the headache of doing it yourself? SourceOne Partners provides PEO & payroll solutions for any small business. With offices in South Florida and New Jersey, we can help you with finding an insurance policy, employee benefits and company taxes so that you can save time, money and avoid the penalties of non-compliance. Please call 561-674-0748 to speak with a payroll expert or click here to contact us online.