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AIA Applauds Workers’ Compensation and Ridesharing Legislation in New York State Budget

Contact: Benjamin Tomchik
(202) 828-7129

WASHINGTON, D.C., April 10, 2017  Alison Cooper, Vice President for the American Insurance Association (AIA), issued the following statement in response to the passage of the 2017-2018 New York State Budget.  The budget brings some needed reforms to the state’s workers’ compensation system including the establishment of a drug formulary by the Workers’ Compensation Board (WCB) to be implemented no later than December 31. In November 2016, AIA advocated for the creation of a drug formulary in comments to the WCB.

Also included in the final budget is language that regulates and permits the operation of transportation network companies (TNCs) in New York State.  Currently, TNCs are only authorized to operate in New York City and are not permitted in other areas of the state.  The enacted legislation sets forth the necessary insurance and other requirements to allow for the operation of ridesharing services throughout the entire state.

Ms. Cooper’s statement follows:

“The establishment of a workers’ compensation drug formulary and legislation governing the use of TNCs were among AIA’s top legislative and regulatory priorities for New York this year.  AIA thanks Governor Cuomo and the Legislature for their hard work passing the 2017-2018 budget and commend the inclusion of language to establish a drug formulary and to regulate ridesharing in the state.

Drug formularies have proven effective in reducing costs to the system while at the same time ensuring that injured workers continue to receive care. In particular, a formulary can help address the problem of opioid use and abuse, which unfortunately remains one of the most pressing issues facing workers’ compensation systems nationwide, including in New York. 

We were also pleased to see the passage of long-awaited legislation to regulate the use and operation of transportation network companies.  Finally, consumers will now be able to use ridesharing services throughout New York State. This legislation not only expands the availability of TNCs outside of New York City, but also sets forth the appropriate automobile insurance coverage requirements to ensure that TNC drivers, passengers and the public at large are adequately protected. New York State will now join 45 other states across the country in enacting this important legislation, which will take effect in ninety days.”


Celebrating its 150th year in 2016, The American Insurance Association (AIA) is the leading property-casualty insurance trade organization, representing approximately 320 insurers that write more than $125 billion in premiums each year. AIA member companies offer all types of property - casualty insurance, including personal and commercial auto insurance, commercial property and liability coverage, specialty, workers' compensation, homeowners' insurance, medical malpractice coverage, and product liability insurance.

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Media Contacts

Benjamin Tomchik


(202) 828-7129