ATTN Group #531 Members: OPPOSE Workers’ Compensation Assessments Bill!

Please take a moment to fax Senate Majority Leader Joseph L. Bruno to oppose legislation (A.8713/S.5612) that would change the basis by which group self-insurer assessments are determined for Workers’ Compensation Board (WCB) administrative expenses and for the Second Injury Fund. Rather than basing assessments on the total amount of compensation paid by the group, they would be based on the contributions paid to the group by its members. This would only exaggerate the significant problem of under-funding among group self-insurers and undermine the stability of the workers’ compensation market.

ACT NOW to urge Senator Bruno to REJECT this legislation!

Please copy this letter onto your letterhead and FAX to Senator Joseph L. Bruno to OPPOSE this legislation today.

Sen. Joseph L. Bruno
Fax: 518-455-2448

Please fax or e-mail a copy of any correspondence to: Aisha Tator, NRLA, at aisha@nrla.org or fax: 518-286-1949.

June 20, 2005

Senator Bruno:

I am writing to express my OPPOSITION to S.5612/A.8713. The backers of this bill are seeking to achieve a narrow advantage for themselves in the guise of promoting fairness. In fact, this bill will shift millions of dollars in future liabilities to other businesses, like the 470 members of my association, the Northeastern Retail Lumber Association.

The backers of this bill are relying upon the fact that the system for collecting the assessment charge is technical and complex, and not widely understood. Far from making the system fairer, their bill would make it easier for participants in group self-insured programs to duck their fair share of the costs of the system.

My policy must be written using ratings board rates and rules that apply to all carriers. Now that it is billed as a percentage of premium, the assessment charge is calculated using these universal, legally required rates and classifications. Self-insured groups are not subject to these rules and have no common objective standard of measuring contributions.

I choose to buy insurance because I have assets to protect, I intend to stay in business for the long haul, I care about my employees, and I do not want to take the added risks associated with self-insurance. Right now, 45 percent of all self-insured groups are considered under-funded, because they did not charge the right premium. Under the current law, those groups now have to pay assessments based upon the losses they actually incurred. If this bill passes, that will no longer be the case, and they will be rewarded for having collected too little premium. Why should I be forced to subsidize the losses of competitors who never had to pay their fair share of the cost of the workers compensation system?

This bill is an attempt by a narrow group of businesses to gain an advantage over everyone else, and I strongly urge the legislature to vote NO on S.5612/A.8713.

Sincerely,

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