2009 Workers' Compensation Rate Increase Released

The Washington State Department of Labor and Industries released its proposed 2009 rate increase -- an average rate increase of 3%. From a historical perspective, it is pretty close in line (see rate increases since 2002). Nothing close to 2003's 29% increase.

The workers' comp system is comprised of three funds, 1) the Accident Fund, 2) Medical Aid Fund and 3) Supplemental Pension fund. The rates on all three funds are going up, some more than others. The rate increase will result in an extra $57 million in premiums going to the state. According to L&I, the workers' comp system covers approximately 2.5 million workers, so that's an increase of about $23 per worker (both employers and employees pay into the system) for calendar year 2009.

Given that yesterday I addressed the Governor's statement that she implemented over $300 million in tax breaks due to the workers' comp rate holiday, does this 3% rate hike amount to a $57 million tax increase?

If the rate holiday was a tax cut, then, following that same logic, the higher rate is most certainly a tax increase.

Comments

[Kevin]

And Oregon's rates are decreaseing nearly 6% next year. In addition they haven't had an increase in 19 yrs and have lower rates than we do. Check out the following links:

http://www.oregon.gov/DCBS/docs/news_releases/2008/nr_wc_rat
http://www.cbs.state.or.us/imd/rasums/2082/06web/06_2082.pdf

We need some competition in this state, not even to get into the discussion as to whether a state should be in the insurance business...