State workers’ compensation benefits are not directly connected to the state’s actual costs, a study by a workers’ compensation think-tank found.
The Worker’s Compensation Policy Institute, a research affiliate of the Public Employer Risk Management Association, released a study that finds there is no “direct correlation that higher benefit costs lead to higher compensation costs.” Gannett’s Ashley Hupfl reports.
The Workers’ Compensation Policy Institute’s study found that before 2007, New York workers were paying the 10th highest premiums in the country, but injured workers only received a maximum of $400 a week, one of the lowest benefits in the country.
In 2007, the state passed the Workers’ Compensation Act, which reformed the state’s workers’ compensation system. The reform bill was to increase benefits while cutting costs, but was not entirely effective ,the study found.
The study found that since 2007, benefits have risen from $400 to $803.21 per week while the state has gone from the 10th to the fifth highest premiums in the state. The reform succeeded in higher benefits, but did not lower costs.
Mississippi has the lowest premiums in the country at $449.12 per week while Iowa has the highest at $1,543 per week.