News Summary
New York assemblymembers are urging an investigation into alleged collusion between the New York Workers’ Compensation Board and private insurer Tradesman Program Managers LLC. They claim this partnership undermines the board’s independence, jeopardizing injured workers’ rights and access to care. The assemblymembers highlight the denial of medical authorizations linked to Tradesman’s influence, warning that this could worsen workers’ struggles. Legal representatives for Tradesman counter these allegations, calling them unfounded. The investigation could have significant implications for the board and its relationship with private insurers, while advocacy groups await changes in the system.
New York assemblymembers are calling for a state investigation into alleged collusion between the New York Workers’ Compensation Board and private insurance companies, claiming that this partnership undermines the board’s independence and compromises the rights of injured workers. The assemblymembers express concerns that board leaders and insurers are collaboratively working to reduce the number of claims, ultimately harming workers’ access to care and benefits.
The assemblymembers specifically targeted Tradesman Program Managers LLC, accusing the company of exerting influence over the board’s operations without holding a valid state license as an insurer. In a letter addressed to Governor Kathy Hochul and Attorney General Letitia James, the lawmakers urged for a thorough investigation into the potential malpractices within the Workers’ Compensation Board.
Assemblywoman Latrice Walker, one of the leaders of this initiative, highlighted that the board has been denying important medical authorizations, which she attributes to alleged pressure applied by Tradesman. She pointed out that many healthcare providers have subsequently chosen not to work with the Workers’ Compensation Board due to these concerns, further limiting access for injured workers needing medical care.
An email exchanged on March 1, 2024, between Workers’ Compensation Board Executive Director Stephen Scotti and a lawyer from NYC Transit alludes to a lawsuit resulting from the rejection of a doctor’s authorization request. This communication seemingly indicates a coordinated effort involving Tradesman that could threaten the integrity of the claims process by prioritizing the interests of insurers over those of injured workers.
In light of these allegations, the assemblymembers are also calling for the resignation of Director Scotti, stating that such a move would help preserve the integrity of any forthcoming investigation. Legal representatives for Tradesman have dismissed these allegations as unfounded, labeling them a fabrication of conspiratorial ideas. They argue that the company is actively combating fraudulent claims and that their practices fall within appropriate regulatory compliance.
Adding to the scrutiny, three state senators recently submitted a letter stating that Tradesman allegedly has been collecting premiums unlawfully while failing to maintain proper licensing as an insurance provider. However, Tradesman contends that it is properly licensed through a managing general agency and expresses readiness to showcase compliance with state regulations.
The Workers’ Compensation Board has publicly maintained that the integrity of its operations remains intact and reiterated its commitment to providing a fair system for all stakeholders involved. Furthermore, Governor Hochul’s office has referred to the board’s statements while litigation regarding these claims is ongoing.
This is not the first instance where the board has faced allegations of unethical practices. A previous letter from the same group of assemblymembers requested an investigation into purported “shadow insurance schemes” involving Tradesman among other companies. Additionally, Jessica Ramos, chair of the Senate Labor Committee, has conducted hearings aimed at demanding better accountability and treatment for injured workers within the Workers’ Compensation Board.
As these developments unfold, the investigation proposed by the assemblymembers could have significant implications for the workings of the Workers’ Compensation Board and the interface with private insurers, as both injured workers and advocacy groups watch closely for changes and improvements in the system.
Deeper Dive: News & Info About This Topic
- Spectrum Local News: Lawmakers Call for Investigation into NY Workers’ Compensation Board
- Littler: New York Expands Workers’ Compensation for Work-Related Stress
- CBS 6 Albany: Governor Hochul Appoints New Leadership to NY Workers’ Compensation Board
- Google Search: New York Workers’ Compensation Board Investigation
- NFIB: New York Expands Workers’ Compensation for Mental Stress to All Employees
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
