New York Compensation Insurance Rating Board

1 New york Compensation Insurance Rating Board 733 Third Avenue New york , NY 10017 Tel: (212) 697-3535 January 26, 2017 2429 Re: New york Workers Compensation and Employers Liability Manual New york Workers Compensation Statistical Plan Approval of Safe Patient Handling Act Filing Effective Date: October 1, 2017 Members of the Rating Board : I write to inform you that the New york State Department of Financial Services ( DFS ) approved the filing made by the New york Compensation Insurance Rating Board ( Rating Board ), in accordance with New york State Insurance Regulation 119, 11 NYCRR (b).

2 New york State Insurance Regulation 119 requires the Rating Board to establish a premium credit program for health care facilities, as defined by Section 2997-h(1) of the New york State Public Health Law, that are in compliance with the provisions of the New york State Safe Patient Handling Act, codified in Article 29-D, Title 1-A of the New york State Public Health Law ( Safe Patient Handling Act ). The documents attached to this bulletin describe the approved premium credit program. In short, for policies effective on October 1, 2017 and after, Insurance carriers will elect one of the premium credit methodologies listed below to determine the credit to be applied to eligible health care facilities: A.

3 A flat credit ( Flat Credit ); or B. A tiered credit in accordance with the following table ( Tiered Credit ): Percentage of Policy Premium Eligible for a Credit % Credit 95% or more Greater than or equal to 70%, but less than 95% 2 Greater than or equal to 35% but less than 70% Greater than or equal to 10% but less than 35% Less than 10% Members of the Rating Board January 26, 2017 Page 2 Each carrier group may choose one credit methodology either the Flat Credit or the Tiered Credit to be applied by each of its carrier members to all of their eligible insureds. To the extent that a carrier is not a member of a carrier group, that carrier must similarly choose one credit methodology to apply to all of its insureds.

4 Unless a carrier group, or a carrier that is not a member of a group, provides notice to DFS that it will apply the Tiered Credit, such group or carrier shall apply the Flat Credit. Please find attached modified and final manual pages that reflect the above-described credit program. Also attached are new endorsements numbered WC 31 04 05 and WC 31 04 06, and titled New york Safe Patient Handling Act Program Explanatory Endorsement, which must be attached to qualifying policies. The premium credit applies to the entire modified policy premium and must be reported to the Rating Board under Statistical Code 9651 Safe Patient Handling Act Program Premium Credit.

5 The following pages have been modified and are attached in redline and final format: 1. New york Workers Compensation and Employers Liability Manual: R-45, R-46, R-93, Appendix C AC-2, AC-3, AC-6, Alphabetical Index and Numerical Index of Endorsements; 2. New york Workers Compensation Statistical Plan: Part III R-17; and 3. Endorsements WC 31 04 05 and WC 31 04 06. In addition, please be advised that the enclosed revised premium algorithm pages reflect the repositioning of the schedule Rating adjustment from item 32 to item 37. However, this repositioning does not impact the premium base to be used in the determination of the schedule Rating adjustment.

6 Members of the Rating Board January 26, 2017 Page 3 The amendments enumerated above have been included in updated versions of the New york Workers Compensation and Employers Liability Manual and the New york Workers Compensation Statistical Plan, which are available on the Rating Board s website at If you have any questions concerning these amendments, please contact Mr. Philip Reda, Vice President, Underwriting Services, at 212-697-3535 ext. 113 or at Very truly yours, Jeremy Attie President and CEO Enclosures NEW york WORKERS Compensation Page R-45 AND EMPLOYERS LIABILITY MANUAL 1st Reprint Effective October 1, 2017 RULE VI 4.

7 New york Safe Patient Handling Act Program (NYSPHAP) The NYSPHAP applies to health care facilities, as that term is defined by Section 2997-h(1) of the New york State Public Health Law, that are in compliance with the provisions of the New york State Safe Patient Handling Act, codified in Article 29-D, Title 1-A of the New york State Public Health Law ( Safe Patient Handling Act ). Classifications that are eligible to receive a credit under the NYSPHAP may include, but are not limited to, the following classes: 8829 Nursing Home All Employees 8833 Hospital Professional Employees 8865 Alcohol or Drug Rehabilitation Facility-All Employees-& Clerical 8866 Assisted Living Facility-All Employees & Clerical 9040 Hospital All Other Employees Mandatory requirements for compliance with NYSPHAP are enumerated in Section 2997-k(2) of the New york State Public Health Law.

8 In accordance with New york State Insurance Regulation 119, 11 NYCRR 151 (b), insurers must verify compliance with the Safe Patient Handling Act. Health care facilities that are in compliance will receive a credit as follows: A. A flat credit ( Flat Credit ); or B. A tiered credit in accordance with the following table ( Tiered Credit ): Percentage of Policy Premium Subject to NYSPHAP % Credit 95% or more Greater than or equal to 70%, but less than 95% 2 Greater than or equal to 35% but less than 70% Greater than or equal to 10% but less than 35% Less than 10% Each carrier group must choose one credit methodology either the Flat Credit or the Tiered Credit which will be applied by each of its carrier members to all of its insureds.

9 To the extent that a carrier is not a member of a carrier group, that carrier must similarly choose one credit methodology which it must apply to all of its insureds. Unless a carrier group, or a carrier that is not a member of a group, provides notice to the New york State Department of Financial Services that it will apply the Tiered Credit, such group or carrier shall apply the Flat Credit. NYSPHAP credit applies to the entire modified policy premium and is to be reported to the Rating Board under Statistical Code 9651. The NYSPHAP credit shall be applied at policy inception and is subject to premium audit.

10 Use Endorsement WC 31 04 05 for Flat Credit. Use Endorsement WC 31 04 06 for Tiered Credit. Page R-46 NEW york WORKERS Compensation AND EMPLOYERS LIABILITY MANUAL RULE VII Effective October 1, 2017 4th Reprint RULE VII PREMIUM DISCOUNT Item 4 of the Information Page continued A. EXPLANATION Premium discount recognizes that the relative expense of issuing and servicing larger premium policies is less than for smaller premium policies. Premium discount is a per policy charge and is calculated based upon the carrier s expense provision as of the effective date of the policy and policy standard premium.