After analyzing the impact of the workers' compensation reform law passed earlier this year in Albany, lawmakers now say the changes will result in about a 20 percent reduction in workers' comp insurance rates for businesses.

This is great news for people doing business in New York, and the savings are even better than what was initially expected.

When the governor and legislative leaders announced an agreement on the reforms in March, the projected savings were for rate declines of 10 percent to 15 percent. A 20 percent reduction in insurance rates will mean about $1 billion in savings for fiscal year 2007-2008.

Workers' compensation reform increases the weekly checks for many injured employees but caps “permanent partial disability” payments at 10 years. It includes medical care guidelines intended to help people recover and return to work and reduces the fees that can be charged for drugs, medical equipment and diagnostic tests.

The new system also includes more aggressive anti-fraud provisions to reduce bogus injury claims that can be so costly to employers.

New York had long been at a disadvantage when competing to land businesses because the insurance required to protect injured workers was more costly here than in any other state in the nation.

The new reforms make New York a better place to do business, and we hope that translates into what's most important: jobs.

In a Legislative session marked by partisan squabbles and unfinished business, workers' compensation reform is an example of something positive that was achieved this year.

We hope the $1 billion in savings is a realistic number and that businesses looking to set up shop in New York will take notice.