As part of her State of the State agenda, Gov. Kathy Hochul wants to make changes to the state’s workers compensation system to make it easier for those with claims to control who provides care and encourage more providers to participate in the system.
According to Dr. James Tacci, medical director for the New York State Workers Compensation Board, thanks to the conditions of current state statute, only about 10% of medical providers are authorized to treat individuals with workers compensation claims. He said that’s largely due to a system that is so burdensome that many people’s primary care providers or specialists simply decline to participate.
“People do get injured at work and that’s a big deal,” he said “It compounds their fear and their frustration when they find out that their primary care physician who I have known for 15-20 years, who manages all of my other medical conditions, won’t be taking care of them for this.”
Workers’ Compensation Board Chair Clarissa Rodriguez told Spectrum News 1 that Hochul is pushing to automatically authorize all licensed medical care providers to treat those with claims. She explained that it will strip away that burdensome process and make it so if someone has a claim, their doctor is already authorized to handle it.
“This proposal will enable them to get treatment from their own providers versus having to go find someone else that they don’t know, and who isn’t familiar with their medical history,” she said.
Tacci said another key part of the plan is changing the process of updating reimbursement rates so that more providers can participate, increasing the fee schedule and tying it to the Medicare fee schedule.
“We’re going to pay them more, historically the fee schedule in the comp system didn’t compare very well to other insurance systems,” he said.
Rodriguez acknowledged that added cost could be borne by insurance companies, and such initiatives are bound to sound the alarm in the business community.
State Assemblymember Scott Bendett knows first hand the challenges small business owners face when it comes to insurance.
“I do think from the employee perspective this is a good thing,” he said.
Bendett has concerns though that such a change could have unintended consequences when it comes to how insurance companies pass the cost along.
“It’s a business, it’s not a charity, and they’re going to have to raise their rates as more services are provided,” he said. “We know that when small business costs go up, it’s directly impacted in correlation to the cost of the goods."
On the Democratic side, state Senate Labor Committee chair Jessica Ramos told Spectrum News 1 that workers compensation reforms are a work in progress.
“Last session, we opened up an important investigation into the gaps in the workers compensation system that allows injured workers to fall through the cracks,” she said. “It is a positive step that the governor is advancing suggestions to improve the system, and I look forward to diving into the details during this budget cycle.”
To further entice providers to get on board, Rodriguez added that the governor wants to codify regulations to ensure those providers get paid by insurance companies while claims are being contested.
“This is a huge deal because it ensures that workers can get treatment and providers will get paid,” she said.