Business - Business News

POSTED: Monday, Sep. 21, 2009

State proposes 7.6 percent increase in workers' comp insurance

Washington state has proposed a 7.6 percent increase in workers' compensation insurance premiums, the highest annual increase in nearly six years.

The Department of Labor & Industries is seeking the increase for 2010 and will hold six public hearings before settling on a final rate. One public hearing will be in Bellingham at 1 p.m. Thursday, Oct. 29, at the Quality Inn, 100 E. Kellogg Road.

With a proposed increase of 7.6 percent, average premiums would go up by about 4 cents per hour worked. The state-run workers' compensation system collects insurance premiums from businesses to cover costs for medical care and wage-replacement and pension benefits for workers injured on the job. It's the largest increase since 2004, when the rate rose 9.8 percent.

"I know that any increase adds to the challenges that businesses and workers face in this tough economy," said L&I Director Judy Schurke in a press release. "We have pushed this proposed rate increase down to the lowest possible level given the uncertain state of our recovery from this deep recession."

Schurke said there were three major factors for the proposed increase: reduced investment returns, fewer premiums because of reduced hours worked and fewer jobs for injured workers when they are able to return to the workforce.

The proposed increase, which would bring in an additional $120 million next year, 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.

Washington is the only state where workers pay a portion of premiums. Next year, the workers' share would increase slightly to just over 28 percent if the proposed rates are adopted. Employers pay the other roughly 72 percent.

Written comments, accepted through Nov. 7, should be mailed to Ronald Moore, employer services program manager at Department of Labor & Industries, P.O. Box 44140, Olympia, WA 98504-4140.