The announcement came from Richard S. Flaherty, president and chief executive officer for Latham, N.Y.-based First Cardinal, who said the unanimous decision by the trustees for each of the 11 groups has not been finalized.
“The legislation, perhaps unintended, has created an environment that could cause group self-insurance programs to be noncompetitive going forward,” said Flaherty.
First Cardinal says the law strengthens the New York State Workers’ Compensation Board’s ability to assess all trusts to pay worker benefits owed by financially troubled trusts that default on their workers comp obligations.
Three remaining trusts that First Cardinal administers in New York have yet to come to a final decision on their course of action, Flaherty said.