Governor Kathy Hochul announced that the New York State Department of Financial Services has approved an average 22 percent reduction in workers’ compensation insurance premium rates statewide, a change the administration says will take effect Oct. 1, 2026.
The administration said the cut represents an estimated savings of more than $1 billion for businesses — an average of $1,779 per policyholder — and that together with other reductions and NYSIF programs the action amounts to more than $1.7 billion in savings for employers and policyholders across New York State.
The New York State Insurance Fund (NYSIF) also distributed more than $700 million to policyholders over the past year through dividends and discount programs, the release said, including $698 million in dividends and discounts for employers in workers’ compensation safety groups and $2.9 million in dividends for disability-benefit policyholders. The announcement additionally states that NYSIF has allocated more than $2.8 billion back to policyholders.
Officials credited several trends and reforms for the lower rates, including declines in the frequency of lost-time claims, enhanced workplace safety measures such as the Warehouse Worker Protection Act, and modernization efforts by the New York State Workers’ Compensation Board. The Board has moved many paper submissions online, adopted a single universal medical billing form (CMS-1500), implemented permanent telehealth regulations, streamlined medical dispute resolution, and advanced electronic medical billing, all of which the release says are speeding claims and payments.
Administration officials quoted in the release included Governor Kathy Hochul; New York State Department of Financial Services Acting Superintendent Kaitlin Asrow; Workers’ Compensation Board Chair Freida D. Foster; NYSIF Executive Director & CEO Gaurav Vasisht; and Assemblymember Harry B. Bronson.
The release notes that employer assessment rates have declined by 37.5 percent since 2021 and directs readers to the New York Compensation Insurance Rating Board website to review the approved workers’ compensation rates.
The reduction will apply statewide beginning Oct. 1, 2026. Local employers, brokers and policyholders in Western New York should consult their insurers or the Rating Board for details about how the new loss costs and assessment rates will affect specific premiums and payroll-class applications.
