WA state among cheapest for workers’ comp

[eridani]

http://www.thestand.org/2014/11/state-among-least-expensive-for-workers-comp/

Every two years, the Oregon Department of Consumer and Business Services compiles the “Workers’ Compensation Premium Rate Rankings” report of what it costs to buy coverage in each state. Its 2014 edition was released last month and Washington was ranked 17th most expensive, dropping four spots from its 13th place ranking in 2012. However, this report doesn’t account for several factors that are unique to Washington’s workers’ compensation system. Those factors include:

► Additional costs — For Washington, the Rate Rankings report only considers premiums for the Accident and Medical Aid funds. Employers here also pay slightly more into the Supplemental Pension Fund (SPF) and for the new Stay At Work (SAW) program.

► Retro refunds — Each year, Washington employers get tens of millions of dollars in workers’ compensation refunds through the Retrospective Rating Program, which amounts to an average rate reduction of about 24% for participating employers. The Rate Rankings report does not include this in its calculations.

► Workers’ share — Most importantly, the Rate Rankings report is based on the total rate paid and doesn’t account for the fact that Washington is the only state in the nation where workers pay a portion of the costs — right now, approximately 25%.

All that adds up to Washington being one of the least expensive states in the country. According to the Bill Vasek, Chief Actuary for the Washington State Department of Labor and Industries, after all the above-mentioned factors are accounted for, just 11 states offer less expensive coverage to employers. (Washington ends up tied with Kansas for 39th.)

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So why does the Roundtable care so much about benefits? Why focus on a single measurement in which Washington ranks best/worst, and then list that in their Benchmarks report under the heading “Business Costs,” when it has nothing to do with the business costs?

Because they want policymakers and legislators to think Washington is the most expensive, which will create a sense of urgency to “reform” the system by cutting benefits. In recent years, that has meant fighting to legalize lump-sum settlements for injured workers. This saves the system money when injured workers, who are often in desperate financial situations, accept lump-sum checks that are smaller than what they would otherwise receive in benefits.

Labor unions and other advocates for injured workers have opposed these buyout settlements, which are now legal for older workers in certain situations, but they expect business lobbying groups in 2015 to push for an expansion of settlements. And they’ll likely point to the Washington Roundtable’s Benchmarks report when they seek those cuts.