Reform deal is a step in the right direction toward addressing our ‘costly’ industrial insurance pension system, says Holmquist Newbry
OLYMPIA… After days of intense negotiations, Sen. Janéa Holmquist Newbry, the Republican leader on business and labor issues, announced today that a bipartisan agreement has been reached on reforming the state’s costly and broken workers’ compensation system.
“I am pleased we finally reached an agreement with the House on reforming our workers’ compensation system,” said Holmquist Newbry. “Although I regret we could not do more this year to bring the system’s costs down by adopting more significant reforms, this agreement represents the first baby step towards real reform.”
The deal reached provides an alternative claims resolution for some injured workers and helps the system avoid major rate increases for employers and workers.
“Washington’s workers’ compensation system is a state industrial-insurance monopoly and in desperate need of reform,” Holmquist Newbry said. “Forty-four other states provide workers with a voluntary settlement option; with this bill, at least some of our injured workers will now have this choice.”
In a December report, the state auditor’s office said the state's fund for workers’ compensation has a 95 percent chance of becoming insolvent within five years. Workers’ compensation taxes increased $117 million in 2010 and $196 million in 2011. Despite these rate increases, there is still a $360 million deficit in the accident fund that is part of the system, and the supplemental pension fund must periodically borrow to meet its obligations.
Washington has the highest pension rate in the country, and one out of 20 claims ends in a pension. Injured workers in Washington are also off the job for an average of almost 300 days, three times the national average.
“Today’s bipartisan agreement is a baby step forward towards ultimately getting people back to work sooner and decreasing the number of pensions driving up industrial insurance costs,” said Holmquist Newbry. “This measure helps get us closer to fully achieving that goal.”
Holmquist Newbry thanked those who helped achieve the agreement for their hard work and long hours.
“I am grateful to the governor, leadership of both parties in the House and Senate, and the moderate Senate Democrats for engaging in negotiations to address the flaws in our costly system,” said Holmquist Newbry.
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