Reactions to Proposed Workers' Comp Rate Hike

Business groups were swift to respond to yesterday's proposed 7.6 percent increase in workers' comp premiums.  At the Puget Sound Business Journal, Deirdre Gregg writes that she started receiving emails opposing the hike even before she'd heard about it.

Not long after the announcement, AWB issued a press release saying the rate hike underscores the need for systemic reform, also noting the piling on of employer costs.

“In this difficult economic climate, any rate increase is a problem for struggling employers,” said AWB President Don Brunell. “The workers compensation tax or rate is one issue but when the cumulative impact of all costs of taxes, fees and government-mandated programs are added together, it makes it increasingly difficult for employers to keep people on the job and their doors open.”

Specific reforms sought by the state chamber:

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 doesn’t allow final settlement agreements.

Washington should also bring its coverage of “occupational disease” claims into line with the majority of states by refusing to cover factors that aren’t primarily work related. Presently, Washington has one of the broadest legal standards for occupational disease coverage in the nation.

The state should also join the 42 other states that allow and encourage the use of medical provider networks to treat injured workers according to national best practices and treatment guidelines at costs that can be negotiated and stabilized.

Finally, Washington should, like many states, index its maximum wage benefits to 100% of the state’s average monthly wage, not the current unjustified rate of 120 percent.

More on AWB's Olympia Business Watch blog here and here.

Republicans quickly raised their concerns, including this video from Sen. Janéa Holmquist.

Additional coverage in the Bellingham Herald and Vancouver Columbian, the latter with good business reactions from local employers.