The Governor’s Office announced July 15 that the New York State Department of Financial Services approved a reduction in workers’ compensation insurance rates that the governor’s office says will take effect Oct. 1, 2026. According to the press release, insured employers across the state are expected to see an average 22% reduction in premiums.
The governor’s office described the change as part of broader efforts to lower insurance costs for businesses and to modernize the workers’ compensation system. The release said the average premium reduction will translate to an estimated savings of more than $1 billion for businesses statewide, or about $1,779 per insured employer on average, and that combined savings for employers and insurers exceed $1.7 billion.
The release also highlights actions by the New York State Insurance Fund (NYSIF). It says NYSIF distributed more than $700 million to policyholders last year through dividends and discount programs — a total the release breaks down as roughly $698 million in dividends and discounts to more than 100,000 employers in group safety programs, plus about $2.9 million in dividends to roughly 27,000 disability-policy customers. The governor’s office further stated that under current leadership NYSIF has “reassigned” more than $2.8 billion to its insureds.
State officials cited a long-term downward trend in premiums: the release says workers’ compensation premiums in New York have fallen since 2020, averaging a 10.3% annual decline over the past six years, and that the employer contribution rate has dropped about 37.5% since 2021.
The statement credited recent safety and system reforms for part of the decline. The Workers’ Compensation Board’s modernization efforts described in the release include a move from paper filings to online processes, adoption of a universal medical billing form (CMS-1500), permanent telehealth rules, electronic medical billing, and faster dispute resolution and hearing schedules — steps the release says have sped payments to providers and reduced delays for injured workers.
The governor’s office included comments from state officials and stakeholders praising the reductions and reforms. The release attributed remarks to Gov. Kathy Hochul and quoted state regulators and agency leaders saying the measures will lower costs for employers while maintaining benefits for injured workers. Assemblymember Harry B. Bronson was named among elected officials who welcomed the reductions.
The release directs readers to the New York Compensation Insurance Rating Board for the approved rates.
Attribution: All figures and policy descriptions in this item are drawn from a Spanish-language press release distributed by the Governor’s press office on July 15, 2026.
