Pres. Cilento exposes who's really behind the workers' comp loss cost increases in his letter in the Times Union

Increase boosts insurers' profits The article “Workers' comp rates up,” July 20, is misleading and raises the question: Who and what is really behind the increase? Loss cost is only one of a number of factors that go into determining workers' compensation rates. The state Department of Financial Services approved a 9.3 percent loss cost increase, not a workers' compensation rate increase. Furthermore, the 9.3 percent loss cost increase is unnecessary; it will only serve to make profitable insurers more profitable. Insurers will benefit from the increase and will use it as justification for legislative and administrative reforms that will further trim injured workers' benefits. Almost as galling as cutting benefits for injured workers is the fact employers will never experience the savings those cuts produce. The New York Compensation Insurance Rating Board, which proposes rate increases, is funded by workers' compensation insurers. Nearly every year, it's the same dance: The board requests outsized loss cost increases and state financial services routinely rejects or reduces the increases. This year, state financial services rubber-stamped the increase and used its decision to lay the groundwork for a legislative giveaway to insurers. As a reason for its approval, state financial services cited the Legislature's failure to pass a doomed proposal rejected by virtually every stakeholder earlier this year because it would hurt injured workers, disadvantage good employers and undermine the system. Clearly, insurers are driving the bus while injured workers and employers are just along for the ride. MARIO CILENTO President, NYS AFL-CIO Albany