The fate of legislative reforms to New Yorks workers compensation policies may pivot on wrangling waged outside of Albany.

At its 37th Legislative Day, the Independent Insurance Agents and Brokers of New York, Inc. brought together members and legislators to discuss a variety of reforms the organization is trying to take to the capital, including those related to workers compensation. Although the day did not see any major breakthroughs in the debates, Dick Poppa, president and CEO of IIABNY, said that there is a widespread opinion among attendees that change is necessary to keep New York in step with the times.

After our initial discussions with the administration, our sense is that they are aware, but have not yet committed to any of the issues, he said. But there is a sense that it is a growing problem.

IIABNY is pursuing a variety of workers compensation changes. While there is plenty of debate ahead, Assemblyman Dave Townsend, (R,C,I,WF-Sylvan Beach), said that he was confident that the Legislature will pass any bill that can appease New York business interests, labor unions, and insurance carriers, alike.

Consensus

The trouble will be in getting all of these players to come to a consensus.

If business, labor, and the insurance industry can agree on a final resolution, Townsend said that would fly right through the Assembly.

Getting all of these players to agree before the houses of the Legislature vote will be especially important when it comes time for the Assembly to vote. Poppa said he anticipates Assembly Speaker Sheldon Silver to stand firmly with labor unions when it comes to workers compensation reform. Neither Silver nor his staff returned calls for comment.

If it comes to it, Poppa said IIABNY will do what it can to woo other lawmakers into essentially ganging up on Silver and overruling his vote.

Silver is myopic with his view of workers compensation. He does not have a sense of New York being out of step with the law, Poppa said. Getting him to recognize that change needs to be made will be difficult.

Reform Proposals

IIABNY has a number of specific workers compensation reform proposals it would like to see brought before the Legislature, including limiting the amount of time that workers would be eligible to collect permanent partial disability benefits and raising the maximum weekly benefits for workers compensation and disability, and converting the permanent partial disability ratings of 25-50-75 percent to the 99 point gradation system recommended by the American Medical Association.

Senator Jim Seward, Chairman of the Senate Insurance Committee and an attendee of the event, was supportive of some of IIABNYs proposals. Certainly capping PPD and refining the percentage of impairment are two areas we need to look at, he said. Thats where the real savings are to the system while still protecting the worker.

But Townsend was more skeptical of some of these proposals. [W]e cant even do it right with three [gradations], he said.

And while he said that he would consider IIABNYs proposal to limit PPD payment times, he would support the idea only if the final plan included a plan to re-educate injured workers who cannot return to their original positions so that they can still find jobs.

If we had something built into the system that could re-train workers to find new career paths, he said, then he would support the limits. But, he said it is important that injured workers are not punished because they got hurt.

Matthew Maguire, director of communications for the Business Council of New York State, said his organization supports the changes suggested by IIABNY, provided they can be accomplished in a manner that reduces costs to employers.

Faster Rate Filing

IIABNY also voiced support for streamlining the process through which carriers file their rates.

We are coordinating closely with the Insurance Department to put them in a position to react to carrier rate filings, Poppa said. Carriers cant get rates fast enough to deal with increasing risks.

These streamlining suggestions include limiting or removing the approval process for reinsurance and increasing the speed for carrier rate filing approvals.

Fighing Insurance Fraud

The final issue on the docket for the day was narrowing the window of opportunity for injured people to present claims to automobile insurance companies. Poppa said that staged accidents and rings of corrupt physicians use the 45 day limit to milk automobile insurers for cash for fraudulent service claims. Poppa said that limiting the amount of time individuals have to file claims will make it more difficult for them to wrack up phony medical bills.

At this point, IIABNY is in the process of speaking with legislators, including Governor Spitzer, about seeing each of these proposals move forward in Albany.