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Workers’ Benefits Drop While Insurance Company Profits Rise

 

A new study issued by the New School, a university in New York City, finds that Workers’ Compensation benefits in New York State remain surprisingly low while insurance company profits are soaring.

New York has some of the lowest minimum and maximum weekly benefit levels in the Northeast. The weekly minimum for temporary total disability, for example, is $150, less than 15 other states and less than half the average amount of five surrounding states. The maximum for TTD in New York in 2017 was $871, well below the neighboring states’ average of $1,180. New York was the first state to adopt workers’ compensation more than a century ago, and fairly compensating injured employees was the guiding principal for decades, the study found. But recent legislative changes, including significant revisions in 2007 and 2017, have been geared toward minimizing employer costs and boosting insurance carrier profits, the authors said.

As injured worker benefits drop, insurance industry profits are higher than ever, up 92% between 2014 and 2017, even as payouts total just 55% of premiums. Data from the National Association of Insurance Commissioners shows that in 2017 and for the first time over the 14-year period that the workers’ comp insurance performance data has been compiled, profits on insurance transactions exceeded investment gains. Overall, those profit margins stood at 17.3%, the study shows. “Workers’ compensation insurers’ profits in New York exceeded $1 billion for the first time,” the authors of the New School study noted.

With New York Workers’ Compensation dropping, injured workers need the best representation possible so they don’t lose even more. Contact Hurwitz, Whitcher & Molloy today!

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As a disabled claimant, I can’t thank Hurwitz, Whitcher & Molloy enough for guiding me through these past fourteen years. No one else wanted my Workers’ Compensation case. No one! It was complicated. There were a lot of issues that made things difficult. They stuck with it well over a decade with preparedness, intelligence and grace. Mister Melvyn, he’s a good guy. Cathy, she’s so amazing.

- Salli B.

I became a client of the Hurwitz firm in May of 1997 due to injuries I received while I was a meat cutter at I. Isenberg Meats in Buffalo, New York. Since my first encounter with your firm and up until the present day, I have been entirely satisfied with the way your firm has treated me.

- William C.

Thank you for all you do throughout the year. I know I’m in the hands of the best compensation lawyers who really care!! God bless you all.

- Michelle A.

If you are injured at work and need a workers’ comp attorney, you need Hurwitz, Whitcher & Molloy. They are the ‘King Pins’ of all comp attorneys. You will be taken care of every step of the way. I am a very satisfied client!

- Richard B.