Workers compensation rates to rise in 2009

DAVE GALLAGHER - THE BELLINGHAM HERALD

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The Department of Labor and Industries announced premiums for workers' compensation insurance will go up an average of 3 percent in 2009.

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.

Insurance actuary calculations, based on anticipated injured-worker claims next year and on wage and medical inflation, indicated the need for a 6.3 percent premium increase, generating $119 million. Instead, the decision to implement a 3 percent increase will generate $57 million, with the contingency reserve absorbing the remaining $62 million.

With the 3 percent increase, average premiums will go up by approximately 2 cents per hour worked. The 2009 rate tables by industry are available online at www.lni.wa.gov.

Washington's workers' compensation system is made up of three funds that provide benefits when workers are hurt on the job. The Accident Fund rate will increase 1.8 percent. Employers pay premiums into this fund. The Medical Aid Fund rate will go up by 3.2 percent, and the Supplemental Pension Fund rate will increase 7 percent. Employers and workers contribute equal premiums into the latter two funds.