The state's Department of Labour and Industries says increase is necessary to cover wage and health care inflation


Worker compensation rates for insured organisations in Washington, US are to rise by an average 3.2% next year, said the state’s Department of Labour and Industries (L&I).

L&I published online the new 2008 rates by industry and said it will notify individual employers of their specific rates in mid-December.

L&I Director Judy Schurke said the increase is necessary to partially cover wage and health care inflation. L&I held statewide public hearings on the increase in October and November.

The increase, which will bring in an additional $58m in premiums next year, is an average for all Washington employers. Individual employers could see their rates go up or down, depending on their recent claims history and any changes in the frequency and cost of claims in their industry.

“Individual employers could see their rates go up or down, depending on their recent claims history and any changes in the frequency and cost of claims in their industry.

The rate increase follows a 2 % decrease in average premiums this year and a current partial rate holiday in the second half of 2007 that is saving employers and workers $315m.

L&I also will fully implement a change in the “Experience Modification Factor,” which is used to determine an employer’s rates. A year ago, the Department adopted the new formula but delayed any cost increase for a year to give employers time to adjust to the change.

L&I runs the state’s workers’ compensation system, which currently provides industrial insurance coverage to about 2.5m workers and 168,000 employers. That represents about two-thirds of the state’s workforce. The rest are employed by companies or agencies that self-insure.