Washington regulators propose no rate change thanks in part to reforms

Washington state officials say they inaccurately projected the amount of savings from legislative reforms to the workers' comp system.

The latest estimate is for savings of $1.5 billion over four years -- $300 million more than anticipated.

"Had the governor and the legislature not adopted the 2011 reforms, I wouldn't be making this proposal today," said Judy Schurke, director of the Department of Labor and Industries. "In fact, without those reforms, we would be facing a rate increase."

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Schurke said the reforms are not the only reason that L&I is proposing to keep rates stable for the second year in a row. She also cited:

Fewer claims in high-hazard industries such as construction.
Frequency has decreased by 6.2 percent.
Medical cost growth has been kept below 4 percent over the past five quarters and is expected to do so in 2013.
Claims are being resolved more quickly.

The proposal would mean an additional $82 million going into the State Fund reserves by the end of 2013. The state auditor had warned about the consequences of continuing inadequate reserves.

L&I has scheduled public hearings and said a final decision would be made in early December for rates as of Jan. 1.

Read more at the WorkersComp Forum homepage.

October 18, 2012

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