Washington s Workers Compensation System Needs Reform NOW!

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Colleen Green
8 years ago
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1 Washington s Workers Compensation System Needs Reform NOW!

2 Ends Washington s state monopoly by giving employers the choice of purchasing workers compensation insurance from private insurance companies (as is allowed in 46 other states) Eliminates the employee paid portion of the Medical Aid premium, beginning January 1, 2011 (all claims costs to be paid by employers, as is the case in all 49 other states) Gives industrial insurance insurers the same authority as the Department of Labor & Industries in legal standing of claims decisions Bases premiums on wages, rather than on hours worked (as is the case in all 49 other states) Allows for insuring of groups of employers by insurance companies (similar to Retro, but by a private underwriter) Establishes a task force, appointed by the Lt. Governor, to reconcile existing workers comp law with the Initiative, and come back with changes for the legislature to consider in January Allows industrial insurance insurers to begin writing policies July 1, 2012.

3 The Initiative does not change workers compensation benefits in Washington, or who is entitled to them The Initiative does not change any of the rights of injured workers under the law; workers retain the right to appeal decisions they disagree with, and to choose their medical provider The Initiative does not require employers to leave the State Fund or self-insurance; it only provides more choices for the employer in deciding how best to manage their workers compensation costs The Initiative does not exempt industrial insurance insurers from all other insurance provisions; unlike the Department of Labor & Industries, they would still be subject to consumer protection laws and the Insurance Fair Conduct Act The Initiative does not dump or leave bad risks in the State Fund; industrial insurance insurers must pay for an assigned risk plan, as protection for the State Fund The Initiative does not make any direct system or process improvements; those would require additional legislative action

4 While the total number of claims filed in Washington continues to decline, total claims costs and per claim costs continue to increase Workers compensation costs are impacting the ability of businesses in Washington to compete or expand; that means jobs going elsewhere, now or in the future Washington being a high benefit, low cost state is a myth Claims management at the Department of Labor & Industries is a mess, with 8% of their claims driving over 85% of State Fund claims costs Despite hiring additional claims staff, time loss duration in the State fund is now over 270 days; that s up an average of 90 days in the past decade! There are few good return to work options for injured workers covered by the State Fund Pensions and their costs are skyrocketing, affecting workers and both State Fund and self-insured employers, yet little to nothing is done to address the concerns The Governor, Legislature and the Department of Labor & Industries are unable or unwilling, for political or other reasons, to address even modest system reforms

5 I-1082 isn t about BIAW or big insurance companies, it is about choices for EMPLOYERS and better outcomes for WORKERS The laundry list of organizations and employers supporting Initiative 1082 is nearly unprecedented on any proposal to change the workers compensation statute in Washington: Building Industry of Washington National Federation of Independent Business of Washington Business The Boeing Company Costco Wholesale Liberty Mutual Washington Roundtable Washington Health Care Washington Food Industry Washington State Farm Bureau American Institute of Architects Washington Contract Loggers Associated Builders & Contractors Washington Construction Industry Council Greater Seattle Chamber of Commerce Washington of Landscape Professionals National Electrical Contractors Property Casualty Insurers of America and many dozens more employer organizations and individual employers

6 Self-Insured employers support Initiative 1082 because they believe in having choices on how best to manage their workers compensation risk Self-Insured employers support Initiative 1082 because they have been at the forefront of pointing out the growing, unsustainable liability in the State Fund and Supplemental Pension Fund, and its effect on all employers Self-Insured employers support Initiative 1082 because it will likely result in cost-savings for their suppliers, customers and competitors Self-Insured employers support Initiative 1082 because the Governor, Legislature, and the Department of Labor & Industries have been unable or unwilling, for political or other reasons, to adopt or accept even modest changes to Washington s workers compensation system; after a decade of seeking more modest proposals, self-insurers believe the only way to get the attention of policy makers is to force them to pay attention. Initiative 1082 does that.

7 Talk to everyone you know, and let them know to vote YES on Initiative 1082 because having more choices is better for employers Ask your clients and employees to vote YES on Initiative 1082, to give State Fund employers options they don t have now, and to help provide better outcomes for injured workers Contribute to the YES on I-1082 SaveOurJobsWA campaign at

8 The was founded in 1972 The represents the approximately 360 self-insured organizations in Washington state (employers that pay their injured worker costs out of their own pockets, rather than paying a premium to the Washington Department of Labor & Industries State Fund) WSIA represents self-insurers interests at the legislature, with state agencies, and in the court system. The also provides over 20 training programs for its members, and 5 conferences during the course of the year For more information about WSIA, please visit Dave Kaplan, Executive Director, WSIA , dave.kaplan@wsiassn.org

OREGON S WORKERS COMPENSATION INSURANCE MARKET

OREGON S WORKERS COMPENSATION INSURANCE MARKET LEGISLATIVE REVENUE OFFICE State Capitol Building 900 Court Street NE, H-197 Salem, Oregon 97301 (503) 986-1266 http://www.leg.state.or.us/comm/lro/home.htm Research Report Number 10-00 September 7, 2000