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Bill

Bill

S 7950

Relates to the establishment of a fraud assessment commission, an assessment for workers' compensation fraud investigations and the workers' compensation fraud investigation fund

2025 Regular Session Introduced by Jamaal Bailey

New York creates a fraud assessment commission and dedicated investigation fund financed by assessments on workers' compensation insurers to combat workplace injury claim fraud.

RETURNED TO SENATE
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Bill Summary · S 7950

Legislative bill overview

S 7950 establishes a fraud assessment commission in New York and creates a dedicated fund to finance workers' compensation fraud investigations. The bill authorizes assessments on workers' compensation insurance policies to generate revenue for expanded fraud detection and investigation operations.

Why is this important

Workers' compensation fraud costs the system hundreds of millions annually, ultimately raising insurance premiums for employers and reducing benefits available for legitimate claimants. By creating a dedicated funding mechanism and commission structure, the bill aims to systematically identify and prosecute fraudulent claims, potentially improving system integrity and reducing costs across the industry.

Potential points of contention

  • Cost burden on employers: The assessment on insurance policies will increase premiums for businesses already paying workers' compensation insurance, with uncertain ROI on fraud prevention
  • Scope and enforcement authority: Questions about whether the commission will have adequate investigative powers and whether assessments will be proportional to actual fraud losses by insurer
  • Fund sustainability: Concerns about whether assessment revenue will be sufficient and stable to maintain the commission long-term, or if ongoing appropriations will be needed

Compiled from official sources — confirm details with the bill’s official record.

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