It’s autumn—the season in which thoughts turn to football, colorful leaf displays, pumpkins and apple cider. For the Washington State Department of Labor & Industries (L&I) it’s time to review workers’ compensation rates for the following year. This year, the department is proposing an average 2% rate increase for 2016, which comes out to a little more than 1 cent per hour worked, L&I said.

In setting rates, L&I explained that it takes a close look at expected workers’ compensation payouts, the size of the reserve fund, wage inflation and other financial indicators to determine the proposed base premium rate. The agency also is looking to cut costs to help keep rates as low as possible, noting that L&I covered almost 90,000 work-related injury and illness claims.

“When workers’ compensation rates are like a roller coaster ride, it frustrates everyone. We’re not going to do that. I’m committed to keeping rates steady and predictable,” said L&I Director Joel Sacks. “We’ve worked hard to decrease the costs of running the program, which is one of the reasons we can propose a rate increase that’s well under the wage inflation rate. Still, this small increase will help build the reserve funds needed to keep our program financially healthy.”

Cutting workers’ compensation costs

L&I has several initiatives underway that focus on helping injured workers heal and get back to work, improving service and reducing costs, the agency said. The initiatives include:

Promoting injury prevention,
Ensuring injured workers receive quality health care,
Supporting employers who want to keep injured workers on a job,
Improving the workers’ compensation claims process,

Wage inflation is the benchmark L&I uses to help determine rates for the coming year, noting that Washington’s most recent wage inflation number is 4.2%. Significant cost savings by the agency are allowing for a proposed increase that is below the wage inflation rate.

“Eliminating major swings in rates makes it much easier for business owners to budget for their workers’ comp costs. And by using wage inflation as a benchmark, we can keep up with rising costs of providing insurance while making sure we have a reserve fund ready for tough times,” said Sacks.

Public hearings scheduled

The agency will hold a series of public hearings at which people can learn about and comment on the proposed rates. The hearings are scheduled for the following locations:

Tumwater, Oct. 26, 10 a.m., Dept. of Labor & Industries Auditorium.
Vancouver, Wash., Oct. 26, 10 a.m., NW Regional Training Center.
Tukwila, Oct. 27, 10 a.m., Tukwila Community Center.
Everett, Oct. 28, 10 a.m., Everett Community College.
Spokane, Oct. 29, 9 a.m., Spokane CenterPlace.
Richland, Oct. 30, 9 a.m., Richland Community Center.

Interested parties also can comment in writing to Jo Anne Attwood, administrative regulations analyst, P. O. Box 41448, Olympia, WA 98504-4148; or email joanne.attwood@Lni.wa.gov. All comments must be received by 5 p.m. Nov. 3, 2015.

Final rates will be adopted by early December and go into effect Jan. 1, 2016.

More information regarding the proposal.

Special Reports /

Washington State proposes 2% average increase in workers&rsquo; comp rates for 2016

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Washington State proposes 2% average increase in workers’ comp rates for 2016