Dave Kaplan

WSIA Executive Director

October 2009

Sorry about the long delay, but July, August and September were so chock full of activity that I didn't have time to write a column.  My apologies for the delay.  There's a LOT going on to tell you about.

State Fund Rate Increase

& Self-Insured Supplemental Pension Fund Assessment

After rescheduling the Workers' Compensation Advisory Committee meeting twice, the Department announced the proposed State Fund rate on Monday, September 21st.  At a meeting back in the summer, the Department estimated that the indicated rate would be 15-20%.  In fact the indicated rate is 19% to 20%.  However, the Department is only proposing a 7.6% rate increase.  Unfortunately for us, the 3.4% COLA on Supplemental Pension Fund benefits equates to a 16% rate increase for self-insured employers.  The Department acknowledged that despite a continued decline in the number of workers' compensation claims, the State Fund's time loss duration is up (now 266 days on average for all time loss claims), there are fewer workers Returning to Work (they say due to the economy), and the number of pensions continues to increase at a rapid pace.

The employer community -- represented by the Employer Coalition, a group of business associations and individual employers -- has called for major reforms to Washington's workers' compensation system.  Specifically, we call for: creating a settlement option (compromise & release); better (more narrowly) defining occupational disease; establishing medical provider networks (to reduce medical costs by having knowledgeable medical providers follow well-established treatment and utilization guidelines); and capping the maximum time loss and pension benefit at 100% of the Statewide Average Monthly Wage (instead of the current 120%).  In light of Boeing's serious consideration of building assembly facilities out of state, serious consideration is being given to these proposals by legislators and the Governor.  To make it happen will require EVERYONE pulling together to make the case for these solutions to our long-term system problems. 

The Washington Self-Insurers Association's legislative agenda is not much different, but with a few additional issues.  Our Association's priorities are: compromise & release; wage calculation simplification; medical provider networks with good practices and utilization standards; fixing the pay during appeal legislation to ONLY apply to appeals; and two Insolvency Trust Fund issues to ensure that self-insurers are not having to pay more then their fair share of the socialized cost related to specific employers.  Watch the website and your emails for more information on these important issues.

Ombudsman's Report.

The Self-Insured Ombudsman Denise McKay has filed her initial report to the legislature.  The report covers operations through June 30, 2009.  It's a very interesting read, even if you don't agree with everything written in it.  Click HERE to read the report.

AnnaLisa Gellerman Named Self-Insurance Program Manager

In case you hadn't heard, with Jean Vanek's retirement in August, AnnaLisa Gellerman was named as her successor as the Department of Labor & Industries' Self-Insurance Program Manager.  A former Assistant Attorney General for the Department, AnnaLisa has been running the consultants section for the past year and a half.  Please introduce yourself to her.  She's bright, articulate, and has a number of the same qualities that made Jean Vanek easier to work with than prior program managers.  We're looking forward to working with her over the next several years.

WSIA's Kaye Thede Seceding From the Association

With the return of her husband from Iraq at the end of the year, WSIA's Administrative Assistant is seceding Washington state at the end of October 2009 and returning to North Carolina.  In over three years with WSIA, Kaye has been an incredible asset to the members, the Association as an organization, and to myself personally.  I can't tell you how much she means to all of us, or even begin to describe the professionalism, hard work, creative problem solving, fun-loving nature, and spirit that will be gone when she leaves.  She will be truly missed.  The search for her successor is under way.

Until next time …

Dave Kaplan

WSIA Executive Director

dave.kaplan@wsiassn.org

Posted 2 October 2009

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