| The state Department of Labor and Industries should stop its plan to raise rates and charge employers approximately $56 million in additional premiums next year, Sens. Bill Finkbeiner and Linda Evans Parlette said recently.
The department recently announced it will raise rates an average of 3.8 percent in 2006. The rate hike follows rate increases of 29.5 percent in 2003, 9.8 percent in 2004 and 3.8 percent in 2005. The agency currently has an “excess contingency reserve” - meaning a surplus - of $1.1 billion.
“Washington employers are already struggling with the huge premium increases L&I has imposed on them in recent years,” said Finkbeiner, R-Kirkland. “Even though the agency is calling this a 'modest' rate increase, $56 million is still a lot of money to take out of the pockets of our state's employers. The agency has a reserve of more than $1 billion. Why would it raise rates again and keep squeezing employers who might cut jobs to pay these extra costs?”
In 2005, the Legislature unanimously passed House Bill 1856, which calls for the first-ever independent financial audit of Washington's workers' compensation system. The state auditor will issue a report on the audit results in 2006. Finkbeiner and Parlette called on Gov. Gregoire and the agency to hold off on the rate hikes until the audit is complete.
“The people of Washington demanded accountability, and that is why the Legislature passed a bill to begin independent financial audits of L&I,” noted Parlette, R-Wenatchee. “The governor should ask the department to put these proposed rate increases on hold, at least until after the independent audit shows us exactly where the money is going and what improvements we might make to tighten the agency's belt. These rate hikes are costing us jobs. It's time for L&I to be accountable.”. | 