New York State Department of Financial Services approves 22 percent reduction in workers’ compensation premium rates from October 1 2026

The New York State Department of Financial Services approved a statewide average 22 percent reduction in workers’ compensation insurance premium rates, which the release said will save businesses more than USD 1 billion, or about USD 1,779 per policyholder on average. The lower rates take effect on October 1, 2026. The release links the cut to a decline in the frequency of workers’ compensation lost-time claims in recent years. It also highlights additional cost relief through the New York State Insurance Fund, which distributed more than USD 700 million over the past year through dividends and discount programs, including USD 698 million for more than 100,000 employers in workers’ compensation safety groups and USD 2.9 million for more than 27,000 policyholders with disability benefits coverage. As further context, the release notes that approved workers’ compensation rate decreases have averaged 10.3 percent annually since 2020 and that the employer assessment rate has fallen 37.5 percent since 2021. The release also points to ongoing Workers’ Compensation Board modernization, including online processing, faster hearings, use of the CMS-1500 universal medical billing form, permanent telehealth regulations, streamlined medical dispute resolution and electronic medical bill submission, which it says are reducing delays and supporting additional system savings.