Glenn Hansen

MultiCare Health System
President, WSIA

Next week, the Department will  be holding a meeting with the WCAC to discuss potential rate increases in the State Fund.  The forecast is for a substantial increase, yet that increase is tempered by some socialized costs paid by the self insurance community primarily in the Supplemental Pension Fund assessment which is a large, unfunded liability of 12 billion dollars.  The self insurance community has roughly 27% of the total productive hours and roughly 20% of the total supplemental pension obligation, but the assessment percentage is not weighted or pro-rated.  If trends continue, the State Fund will continue to add pensions to the system at a higher rate than the Self-Insurance community and the assessments will continue to rise with little possibility of control by the self insurers.  Essentially, we are and will be subsidizing increasing State Fund supplemental pension obligations. 

Now is the time to be looking at options to reduce our exposure to these increasing costs.  A popular solution is Compromise and Release, available in other states.  Other options might be to eliminate rate increases for pensions, developing a new formula for determining lifetime awards that differs from the TTD formula, stopping PTD benefits at a certain age, reviewing Social Security retirement eligibility as an end point trigger, and reviewing other plans outside of Workers' Compensation such as defined pension plans to see how they operate.  The point is that we probably have many ideas floating out there that we need to carefully consider and discuss. 

How can you help?  Be a voice for our community.  Talk to your legislators and fellow members.  Attend Legislative Committee meetings and other meetings where employers gather to discuss workers compensation issues.  Get to know the issues and the message.  Let WSIA leadership know what you hear so we can seek opportunities to work collaboratively to solve our issues.

Lastly, just a reminder that the Medicare CMS reporting is quickly approaching.  Make sure that you or your assigned claims management program is prepared to begin submitting data. If you haven't signed up, now is the time.

As President this year, I want to hear your thoughts and concerns.  What are we doing right?  What could improve?  Please don’t hesitate to contact me at glenn.hansen@multicare.org to let me know your thoughts.

Updated 11 September 2009

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