L&I proposal would increase workers' compensation rates

On Sept. 7, the state Department of Labor and Industries (L&I) proposed a 3.2 percent increase in 2008 workers' compensation rates to help keep pace with inflation. Average premiums would go up by just over 2 cents per hour worked.

“Wage-replacement costs for injured workers are up 5.4 percent and we expect workers' health-care costs to grow by 5.5 percent,” L&I director Judy Schurke said.

“Our proposed increase for 2008 would not cover all these higher costs. However, past strong investment earnings will allow us to make up the difference and help keep rates stable.”

The proposed increase, which would bring in $58 million, is an average for all Washington employers. Individual employers could see their rates go up or down, depending on their recent claims history and any changes in the frequency and cost of claims in their industry. L&I has published online and will soon send to employers the proposed 2008 rate tables by industry.

The 2008 rate proposal follows a 2 percent decrease in average premiums this year and a current partial rate holiday in the second half of 2007 that is saving employers and workers $315 million.

Washington's workers' compensation system is made up of three funds that provide benefits when workers are hurt on the job.

Under L&I's proposal, the Accident Fund rate would decrease 4.5 percent. Employers pay premiums in this fund. The Medical Aid Fund rate would go up by 10.5 percent, and the Supplemental Pension Fund rate would increase 17.1 percent. Employers and workers contribute equal premiums for the latter two funds.

Washington is the only state where workers pay a substantial portion of premiums. Next year, their share would be just over 25 percent if the proposed rates are adopted.

Final 2008 rates will be adopted in late November following five public hearings.

In Spokane, a public hearing will take place on Oct. 25, at 10 a.m. at the West Coast Ridpath Hotel, 515 W. Sprague Ave.

Written comments, accepted through Nov. 6, may be e-mailed to Ronald Moore, Employer Services Program Manager, or mailed to him at the Department of Labor and Industries, P.O. Box 44140, Olympia, WA 98504-4140. Faxed comments should go to 360-902-4729.