Association of Washington Business members seek relief from expensive state system

OLYMPIA— Citing a need for reform of the state’s workers’ compensation system, the Association of Washington Business today endorsed Initiative 1082. The association’s board — and an overwhelming vote of its more than 7,000 predominantly small business members —supported the endorsement.

“Unfortunately, the governor and the Legislature have not taken action on the workers’ comp reforms that have been proven effective in other states. We couldn’t even get a hearing on a workers’ comp bill this session, costs continue to increase and employers are frustrated,” said AWB President Don Brunell.

“1082 may not be perfect, but employers on Main Street, hospitals, school districts, nonprofits, local colleges and large corporations are faced with higher workers’ comp costs. The system, as it currently stands, is broken. This is good first step toward real reform.”

Washington state’s per worker costs are the second highest in the nation according to the National Academy of Social Insurance. And while improvements in workplace safety have reduced injuries 55 percent since 1990, claims are taking longer and costs skyrocket as workers are off the job until their claims are resolved.

Starting July 1, 2012, the initiative would authorize private insurance companies to provide coverage for on-the-job injuries, ending the state’s century-long monopoly on the sale of workers’ compensation insurance and aligning Washington with the practice of 46 other states. Its other key features include:

· Creating authority within the Office of Insurance Commissioner to regulate private insurers and certify that they are able to provide the benefits and follow the rules set out in our workers’ compensation laws;

· Creating a joint legislative task force to propose legislation to the 2012 Legislature conforming the state’s existing laws to the new system; and

· Ending the requirement that workers pay one-half of the premium tax for workers’ comp medical coverage, which accounts for $315 million, or about 18 percent, of the overall workers’ comp tax.

“Employers recognize that the initiative is only the beginning,” added Brunell. “Hopefully, elected officials, union leaders and personal injury attorneys will come together after I-1082 passes and help us find ways to enact futher reforms that are meaningful for working people and their families and those who provide the jobs that support them.

“The status quo does not work,” concluded Brunell. “The real challenge is how to make our workers’ comp system less costly and more responsive to injured workers by treating them and getting them back to work as quickly and safely as possible.”

About the Association of Washington Business
Formed in 1904, the Association of Washington Business is Washington’s oldest and largest statewide business association, and includes more than 7,000 members representing 650,000 employees. AWB serves as both the state’s chamber of commerce and the manufacturing and technology association. While its membership includes major employers like Boeing, Microsoft and Weyerhaeuser, 90 percent of AWB members employ fewer than 100 people. More than half of AWB’s members employ fewer than 10. For more about AWB, visit http://www.awb.org/.

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