The Washington Retail Association has called for sweeping reforms to the state workers’ compensation system in light of the proposed average 7.6 percent premium increase in 2010.
Rising premiums in the face of falling claims presents a situation that cries out for reforms to the state system, said Jan Teague, WRA’s President/CEO.
Retailers are struggling in the current deep recession and can ill afford increased costs that threaten more layoffs and delays in the recovery of the state’s economy, Teague said.
Since 1990, claims statewide have dropped 55 percent while workers’ comp insurance rates have risen more than 50 percent the past decade, Teague said. Further, the average injured worker misses 266 days of work in the state, nearly three times the national average. Pension rates statewide have increased more than 300 percent since 1996, she noted.
Washington premiums are based on the number of hours worked.
Teague outlined four reforms the Legislature should address to fix the system and lessen the financial burden on retailers statewide:
*Allowing workers, employers and L&I the option to settle and release claims for a lump sum. Washington is in a minority of states that forbids this option for resolving claims.
*Better define occupational diseases. Rule out non-work related conditions such as growing older. Washington has one of the broadest occupational disease definitions in the country.
*Establish medical provider networks, such as 42 other states. Injured workers deserve access to medical providers who specialize in treating their specific condition and adhere to evidence-based guidelines for medical treatment.
*Re-evaluate wage inflation rates. Base wage levels at the national standard of 52 weeks prior to the date of injury and adjust for 100 percent of inflation, not the current 120 percent.
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