Tag Archives: Premiums

Workers' Compensation Coverage

WA State DLI Proposes Significant Drop in Workers’ Comp Rates for 2019

The price of workers’ compensation insurance in Washington will likely drop significantly in 2019. The state Department of Labor & Industries (L&I) proposed a 5 percent decrease in the average premium employers pay for the coverage.

If approved, the rate decrease would be the largest drop since 2007. The lower rate would mean employers would pay an average of about $58 less a year per employee for workers’ compensation coverage. Employees would pay about $6 less a year for their share of the cost.

The proposed decrease would mean Washington workers and employers, as a group, pay $136 million less in premiums.  

The public will have an opportunity to provide input about the rate proposal before a final decision is made in December.  

L&I Director Joel Sacks says decreases in work-related injuries, along with L&I initiatives to improve outcomes for injured workers and reduce costs, have made the system healthier and are contributing to the proposed decrease. 

“We’ve seen a big drop in injuries at work in our state since 2012. And that’s great news because preventing injuries and making workplaces safe is our number one goal,” said Sacks. “Along with that, we’re doing a better job helping injured workers heal and return to work. That’s good for workers and employers, and helps us lower the cost of workers’ compensation coverage.”  

One example of an effort that’s helping workers and employers is L&I’s Stay at Work Program. It pays for some of the costs for employers to keep injured workers in light-duty jobs until they fully recover. Since 2012, the program has provided $72 million to employers, which has helped provide 27,000 workers with light-duty jobs while they heal.

L&I has also established opioid prescription guidelines which have resulted in a 90 percent reduction in the number of workers receiving opioids at 6-12 weeks after injury. And the agency has been providing vocational support and assistance earlier in injury claims, which has helped reduce long-term disability. In the last five years, these and other improvements have resulted in a more than $2 billion reduction in projected long-term costs for the workers’ compensation system.  

Helping workers recover and keeping the workers’ compensation system healthy

Employers and workers pay into the workers’ compensation system to help cover the cost of providing wage and disability benefits for injured workers, as well as medical treatment of injuries and illnesses. The premiums also provide a safety net by ensuring reserves are available to cover the unexpected, like a natural disaster or downturn in the economy.

Each fall, L&I determines the proposed rate for the following year by looking closely at several factors, including expected workers’ compensation payouts, the size of the contingency reserve, wage inflation and other financial indicators.

A 2.5 percent decrease last year, along with some small increases in workers’ compensation premiums since 2014, have kept rates steady and predictable, making it easier for employers to budget for workers’ compensation costs while also building and maintaining an adequate reserve fund for the workers’ compensation system.

Public hearings planned for October

The agency will hold three public hearings where people can learn about and comment on the proposed 2019 rates. The hearings are scheduled for: 

  • Tumwater, Oct. 30, 9 a.m., Dept. of Labor & Industries Headquarters
  • Tukwila, Oct. 30, 1 p.m., Dept. of Labor & Industries Tukwila Office
  • Spokane Valley, Oct. 31, 9 a.m., Spokane CenterPlace 

People can also 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. 2, 2018.

More information about the proposal is available at www.Lni.wa.gov/Rates. Final rates will be adopted by early December and go into effect Jan. 1, 2019.

Photo on Foter.com

Workers' Compensation

WA L&I NEWS: Cost of Workers’ Compensation Insurance Dropping for Many Yext Year

The price of workers’ compensation insurance will go down for many businesses in Washington next year. Today, the state Department of Labor & Industries (L&I) announced that the average amount employers and workers pay for the coverage will drop by 2.5 percent in 2018.

Unlike many states, Washington employers and employees share the expense of workers’ compensation premiums.

After proposing the decrease in September, the agency hosted several public hearings around the state to take input. L&I Director Joel Sacks made the final decision this week.

“We’ve made several improvements that are helping injured workers heal, return to work sooner and avoid long-term disability,” said Sacks. “We’ve also used small rate increases in recent years to make the workers’ compensation system healthier and to build our contingency reserve. As a result, we’re able to cut premiums in 2018.”

Lower rate means businesses and employees will pay millions less

The rate decrease means employers will pay about $34 less a year per employee for workers’ compensation coverage in 2018. As a group, Washington employers will pay $67 million less in premiums. Employees will also pay less for their share.

L&I attributes the decrease to several factors, including the improved economy, employers and workers focusing on safety, and L&I initiatives that are helping injured workers recover sooner and reducing workers’ compensation costs.

One example of an improvement to the workers’ compensation system involves providing injured workers vocational support and assistance much earlier in claims. It’s helping people hurt on the job return to work sooner. The rate of workplace injuries that develop into long-term disability is down by more than 18 percent from 2012.

The 2.5 percent workers’ compensation premium decrease is an average; individual employers may see smaller or larger drops depending on that employer’s industry and claims history. For that same reason, some employers will see increases.

Steady and predictable rates

L&I is working to avoid large rate swings that make it hard for employers to plan. The agency determines the proposed rate each fall by looking closely at expected workers’ compensation payouts, the size of the reserve funds, wage inflation and other financial indicators.

Employers and workers pay into the workers’ compensation system to help cover the cost of providing wage and disability benefits, as well as medical treatment. L&I is the state’s primary workers’ compensation insurance provider, covering about 2.8 million workers and nearly 180,000 employers. The agency accepts more than 90,000 claims a year.

The new rates go into effect on Jan. 1, 2018. More information about 2018 workers’ compensation rates is available at www.Lni.wa.gov/Rates.

Photo on Foter.com

Workers' Compensation

Rate Increase for 2015 WA Workers’ Compensation Premiums

L&I proposes 1.8 percent average rise in workers’ comp rates in 2015 — slightly less than wage inflation

TUMWATER – Tens of thousands of workers in our state are injured on the job every year, and our workers’ compensation system is there, ready to help them, their families and their employers. As both wages for workers and health care costs go up, the cost of providing this insurance goes up too.

The Department of Labor & Industries (L&I) is proposing an average 1.8 percent rate increase for 2015 workers’ compensation premiums, which is just under the current rate of wage inflation. The increase comes out to about 1 cent per hour worked.

Employers and workers around Washington pay into the workers’ compensation system so they’re covered if someone gets hurt on the job or becomes ill from a workplace exposure. Last year, L&I covered more than 80,000 work-related injury and illness claims in Washington state.

The proposed premium increase will help cover wage and disability benefits, as well as medical costs for treatment of injuries and illnesses. It will also allow L&I to continue to build reserves to protect against the unexpected.

 

Cutting workers’ compensation costs

“This measured increase will help make sure we have a healthy workers’ compensation system that’s always ready to help workers when they need it,” said L&I Director Joel Sacks. “The proposal keeps with our long-term plan to keep rates steady and predictable, help injured workers heal and return to work, and reduce costs by improving operations.” 

L&I has several initiatives underway to improve its ability to get injured workers healed and back to work while reducing costs and improving service. To do this, the agency is focused on:

  • Promoting injury prevention.

  • Ensuring injured workers receive quality health care.

  • Providing services to support employers who want to keep injured workers on a job.

  • Improving the workers’ compensation claims process.

The Stay at Work Program is one example of agency work to help injured workers and employers, and save money. This fall, L&I launched a second campaign to promote the program. Through Stay at Work, the state reimburses employers for part of the cost of providing light-duty work to injured employees. The employees get to keep working and are more likely to recover faster.

 

Keeping the system healthy and rates steady

L&I is using wage inflation as a benchmark to keep workers’ compensation rates steady and predictable. Washington’s most recent wage inflation number is 2 percent. As wages climb, the cost of providing workers’ compensation coverage rises.

“Raising rates this small amount helps keep costs in check for businesses, helps our system keep up with inflation and assures we have a reserve available for the tough times. It makes good financial sense,” said Sacks.

 

Public hearings on the proposed rates will be held in: 

  • Bellingham, Oct. 22, 9 a.m., Whatcom Community College.

  • Spokane, Oct. 23, 9 a.m., CenterPlace Event Center.

  • Richland, Oct. 24, 9 a.m., Richland Community Center.

  • Tumwater, Oct. 27, 9 a.m., L&I Building.

  • Tukwila, Oct. 28, 9 a.m., L&I Office, Gateway Corporate Center.

  • Vancouver, Oct. 30, 9 a.m., Northwest Regional Training Center.

 

People can comment at the public hearings or 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, 2014.

More information regarding the rates proposal is available at www.Rates.Lni.wa.gov. Final rates will be adopted by Dec. 1 and go into effect Jan. 1, 2015.

 

Workers’ Comp Facts:

  • L&I is the state’s primary workers’ compensation insurance provider, covering 2.4 million workers and more than 160,000 employers.

  • The proposed rate is an average. An individual employer’s actual rate change may be more or less depending on that employer’s industry and history of claims that result in wage replacement and/or disability benefits.

  • More than 80,000 claims are accepted each year through the Washington State Workers’ Compensation State Fund. 

Photo credit: Mostly Muppet / Foter / CC BY

Wage and Rates

Wage Theft Another Assault on Workers’ Compensation

Today’s post was shared by Gelman on Workplace Injuries and comes from www.nytimes.com

As corporate America devises new methods to reduce wages it also assaults the injured workers’ benefit safety net, including workers’ compensation insurance. That results in rate benefits going down and premium bases becoming inadequate to pay ongoing claims. Today’s post is shared from nytimes.com and is authored by its Editorial Board.

When labor advocates and law enforcement officials talk about wage theft, they are usually referring to situations in which low-wage service-sector employees are forced to work off the clock, paid subminimum wages, cheated out of overtime pay or denied their tips. It is a huge and underpoliced problem. It is also, it turns out, not confined to low-wage workers.

In the days ahead, a settlement is expected in the antitrust lawsuit pitting 64,613 software engineers against Google, Apple, Intel and Adobe. The engineers say they lost up to $3 billion in wages from 2005-9, when the companies colluded in a scheme not to solicit one another’s employees. The collusion, according to the engineers, kept their pay lower than it would have been had the companies actually competed for talent.

The suit, brought after the Justice Department investigated the anti-recruiting scheme in 2010, has many riveting aspects, including emails and other documents that tarnish the reputation of Silicon Valley as competitive and of technology executives as a new breed of “don’t-be-evil” bosses, to cite Google’s informal motto.

The…

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