New York Reforms Working Well
The New York reforms are working well in some areas. WCRI-New York – The Workers Compensation Research Institute (WCRI) recently published a study on the New York reforms enacted in 2007.
Coincidentally, we have had an uptick in contact from New York for our services. Most of the inquiries concerned searching for alternative and less costly WC coverages than being in the NYSIF.
Two prior WCRI studies in this blog were heavy New York opioid use and the prior years’ study on New York reforms.
The major areas that the WCRI study covered were:
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an increase in the maximum weekly benefit;
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caps on permanent partial disability duration;
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medical treatment guidelines to be created and implemented;
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adoption of a pharmacy fee schedule;
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creation of networks for diagnostic services and thresholds for pre-authorization; and
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administrative changes to increase speed of case resolution.
- The number of visits per indemnity claim decreased notably for chiropractors and physical/occupational therapists when compared with the prior year. (2012 as compared to 2011). This is a very positive result for employer WC savings.
- From 2007 to 2010, for PPD/lump-sum cases at an average 24 months of experience, there was a nearly 15 percentage point decrease in cases that received PPD payments only (with no lump-sum payment) and a nearly 12 percentage point increase in cases with a lump-sum settlement only (with no PPD payments). This is a very positive result in reducing the indemnity payment portion of claims.
- From 2007 to 2011 (for claims at an average 12 months of experience), there was a 4 percent increase in the number of visits for major radiology services by nonhospital providers. The percentage of indemnity claims with major radiology services also grew over that same period, from 45 percent to 52 percent.
- There was little change in the average defense attorney payment per claim from 2009 to 2010, but an increase of nearly 9 percent in 2011.