Workers’ compensation premiums would increase an average of only 3.7 percent next year under a proposal issued by the Washington Department of Labor and Industries (L&I). The increase is the lowest in three years because of higher investment earnings and positive program trends. “We’ve had a good year financially, and we also are making substantial progress in controlling medical costs and getting injured workers back to work as soon as it is medically appropriate,” said L&I Director Paul Trause. “The increase in the average length of time-loss claims appears to be leveling off and investment earnings have improved. Given these favorable trends and the continuing economic challenges facing employers and workers, we settled on an increase that would simply keep pace with increased costs.” If adopted, the higher premium rate would cover anticipated increases in the cost of workers’ compensation benefits for workers injured on the job next year. Trause will make a final decision on rates in late November. The new rates take effect Jan. 1, 2005. The 3.7 percent increase is an average for all industries and employers. Individual rates will be higher or lower based on the cost of an employer’s recent claims and the frequency of claims in the risk classes in which they are reporting.
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