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.”
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Rosalie Donlon
Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].
