New York's medical malpractice and workers' compensation markets are heading in opposite directions, with the state cutting comp rates 20.5 percent shortly after approving a 14 percent rate hike for doctors.
The rate cut ordered by New York Insurance Superintendent Eric Dinallo was prompted by reforms in workers' comp laws earlier this year, estimated to save New York businesses about $1 billion in the 2007-2008 fiscal year, according to the New York State Insurance Department.
In March, Gov. Eliot Spitzer and legislative leaders announced what was called an historic agreement designed to lower the cost of workers' comp insurance while increasing weekly benefits. The governor projected then that the result would be a rate decline of 10-to-15 percent.
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