L&I proposes keeping workers’-comp rates steady for 2021

L&I proposes keeping workers’-comp rates steady for 2021

Sept. 15, 2020

TUMWATER — The state Department of Labor & Industries (L&I) is proposing no increase in the average price employers pay for workers’ compensation insurance next year. If the proposal is adopted, this will be the first time in 20 years that workers’ compensation rates have dropped or stayed steady for four years in a row.

“Our 2021 rate proposal recognizes the toll the pandemic is taking on employers and workers in our state,” L&I Director Joel Sacks said. “Although our projected workers’ compensation costs are going up, we’re keeping premiums the same by taking advantage of the reserves we’ve built over the years by improving services and reducing disability.”

Employers and workers pay into the workers’ compensation system to help cover the cost of providing wage and disability benefits for injured workers, as well as medical treatment of injuries and illnesses.

“As we understand, there is a 12% increase proposed to the Supplemental Pension Fund, which also effects self-insured firms. AGC will continue to advocate for fair and accurate time-loss benefit rates with increases driven by inflation versus the state’s average wage.  Unfortunately, the current methodology can result in double-digit time-loss rate increases out of line with inflation and marketplace raises for inflation,” said Lauren Gubbe, Director of AGC’s workers compensation Retro program.

On Sept. 22, L&I will begin taking public comment on the rate proposal. Read more…

https://content.govdelivery.com/accounts/WADLI/bulletins/2a0be6f

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