Report: Computer System Upgrade Suspended for Lack of Progress

Thursday, August 28, 2025 | 0

Officials in Washington state have pulled the plug on efforts to upgrade the workers' compensation medical claims management system, citing a lack of progress over the last 10 years, the Seattle Times reports.

Washington Technology Solutions, the state's information technology oversight agency, suspended all project activities and expenditures on Friday.

The Department of Labor and Industries started the process for upgrading its claims system in 2015. The project has cost $30 million to date but is still in the planning stages, according to the report.

Some observers blamed L&I leadership and turnover at the agency for the delays. 

Others told the newspaper that the state's tech agency frequently changed the guidance and directives it gave L&I regarding the project. 

The Seattle Times reports that a quality assurance report on the project from May said leadership at L&I appears more focused on "addressing legislative and oversight concerns" than hitting specific upgrade goals.

The governor reportedly said he wanted to see the L&I program get back on track.

The newspaper reports that technology upgrades blowing past budgets and deadlines are not a problem unique to L&I.

A planned upgrade of the Office of Financial Management system that was expected to launch in 2022 for $144 million is now expected to cost at least $449 million and launch sometime in 2027.