AWB Examines Workers' Comp Rate Increase: Finds Flawed System

Two good posts at Olympia Business Watch, one linking to a column by Don Brunell, Association of Washington Business President.  Brunell's column makes this point:

Competition reduces costs and improves quality. But Washington is one of only four states with a state monopoly of workers’ comp insurance. Except for 375 large self-insured businesses, all employers are required to purchase their insurance from the government. About half the remaining states allow private insurers to compete with the government program.

...Washington should join with 90 percent of the nation that allows private-sector competition in order to reduce costs and improve service in our workers’ comp program.

In addition, some common-sense reforms L&I and the Legislature should pursue next session include creating a settlement option for complex or long-term claims as an alternative to pensions. Washington is one of six states that don’t allow final settlement agreements.

Kris Tefft takes a look at what's happening to workers' comp premiums in other states. Most are cutting rates, while ours will be going up. Check out their experiences. We should learn from them.