L&I Announces 5% Rate Cut

Wednesday, December 5, 2018 | 0

The Washington state Department of Labor and Industries announced that the price of workers’ compensation coverage will drop an average of 5% next year.

The 5% rate decrease is the largest reduction in over a decade, the department said in a statement. It comes on the heels of a 2.5% decrease last year.

L&I said its projected long-term costs for the workers’ compensation system have fallen by more than $2 billion over the last five years. The department credited programs to facilitate return-to-work, reduce opioid use and expedite vocational support for injured workers as driving down costs. A greater focus on safety by employers and workers is also helping reduce system costs and rates, according to the department.

The department also said it’s Stay-at-Work program is making a difference by providing employers with more than $72 million to make job site accommodations to keep more than 27,000 injured workers in light duty positions while they heal.

The rate cut will save businesses about $58 per employee, and the department said premium collections will fall by $136 million as a result of the rate cut.