KEY TAKEAWAYS:

• Beginning January 1, 2027, carriers and self-insured employers in New York State may provisionally pay for medical care without admitting liability

• This expanded “without prejudice” option will apply to medical-only claims, not just lost-wages benefits (indemnity)

• This flexibility may help employers and carriers avoid unnecessary litigation where the cost of contesting a claim outweighs the value of early medical payments

• If the employer does not dispute the claim or issue a termination notice within the 365-day temporary payment period, the claim will be deemed accepted

Effective January 1, 2027, New York carriers and self-insured employers will have expanded flexibility when handling uncertain workers’ compensation claims. Under the amended WCL § 21‑a, they may begin paying for medical treatment on a temporary basis – without conceding liability – while they assess the extent of their liability.

Under the current law, the “without prejudice” option is limited to lost‑time benefits and prescribed medicine. The amendment extends that same protection to medical‑only claims. This gives employers and carriers more room to manage lower‑value or ambiguous cases proactively, especially where the cost of litigation could outweigh the cost of providing medical care upfront.

To use this temporary-payment process, the employer or carrier must issue a notice of temporary payment to both the claimant and the Workers’ Compensation Board, clearly stating that these payments do not constitute an admission of liability. They may continue making payments for up to 365 days while they investigate or evaluate the claim.

If the employer decides to stop making temporary payments, it must provide a termination notice within five days of the final payment. Without this notice – and without filing a formal dispute within the one‑year window – the claim will automatically be considered accepted.

If you have questions about this change or other workers’ compensation issues, please contact:

• Timothy J. Connolly, III
• Philip Unwin

Or another member of our Workers’ Compensation team.