OLYMPIA, WA - Washington Senator Mark Schoesler (R-Ritzville) and Senate Republican leader, today applauded the Senate’s passage of a key reform aimed at reducing industrial-insurance costs. Engrossed Substitute Senate Bill 5127 passed the Senate by a bipartisan vote of 27 to 18, and now heads to the House for consideration. From Senator Majority Coalition Caucus: The bipartisan reform would protect employers from $1 billion in tax increases over 10 years. A mid-range projection from the Department of Labor and Industries figures the measure would produce $232 million in one-time savings to the reserve and annual savings starting at $90 million per year. “While Washington is beginning to show signs of economic recovery, there is still not a corner of this state where the unemployment rate is acceptable,” said Schoesler. “One of the biggest barriers to creating and keeping jobs here is our costly workers’ compensation system; most employers have no choice but to buy industrial-insurance coverage from what is a state-run monopoly. “The reform passed today will increase the choices for injured employees; make it easier for employers to hire; and help bring us closer to being in line with 44 other states that have no age restrictions on settlements at all. I hope our colleagues in the other chamber will pass this bill and get it to the governor immediately.” State law limits the voluntary-settlement option to claimants age 55 and older. Under the bill passed today: Workers age 40 and older would have the option of negotiating a voluntary settlement and going back to work. Legislative intent for the standard for administrative review of settlements where the worker has legal counsel is clarified – a move made necessary after a misinterpretation by the Board of Industrial Insurance Appeals (this angle is known as the “Zimmerman fix”). No changes are made to the numerous worker protections in the settlement process, including waiting periods, cooling-off periods, and administrative review. Workers will continue to receive medical care and benefits. “Workers’ comp tax rates have gone up by more than 70 percent in the past decade alone,” said Schoesler. “We must get control of these costs if we hope to get people back to work and free up more money so those who are working can receive better salaries.” Schoesler noted Washington has the highest benefit cost per covered employee in the nation ($857), the longest average time loss duration in the nation (289 days), and the largest number of annual pensions – payments resulting from claims – awarded in the nation (up to 1,800 per year).
Posted on: Sun, 09 Jun 2013 23:27:13 +0000
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