WASHINGTON SELF-INSURERS ASSOCIATION
2006 Legislative Agenda

The following proposals are the Washington Self-Insurers Association’s top priorities for the 2006 Legislative Session:

SELF-INSURED AUTHORITY
The WSIA has been working over the past year with organized labor to come to agreement on a bill expanding the authority of self-insured employers. Self-insurers in Washington want the same authority to manage claims that self-insurers have in almost every other state in the country. While no agreement has yet been reached, elements of the bill would: allow for the initial claims decision to be made by the self-insurer; protect the worker’s right to protest and appeal their claim; continue benefits when the Department reverses a self-insurers decision, until the Board of Industrial Insurance Appeals renders a decision; increase and add new penalties for violations in the payment of benefits or abuse of the expanded authority; and establishes of an ombudsperson to assist workers with their claims. This legislation will benefit both injured workers and the self-insured employers that employ 4 out of every 10 employees in Washington.

COMPROMISE & RELEASE
Nearly every state in the country allows for the resolution of claims short of a awarding a pension. For the 2005 Fiscal Year, the State Fund paid over $4 billion in pension costs … of $8 billion on total workers’ compensation costs. With the number of pensions here in Washington having doubled in the past 5 years, and pension costs having doubled over the past 10 years, this ratio is totally out of line with most states, and actually poses a huge liability issue in the future. Additionally, the Department is pushing to change the assumed discount rate (to lower it) while interest rates generally are increasing. The cost to self-insured employers: nearly $80 million to reserve for the same pensions they currently fund. The WSIA opposes the discount rate change until Washington state addresses the long-term pension liability issue by adopting compromise & release on claims. Compromise & release will allow for the settlement of difficult workers’ compensation claims short of issuing pensions, and provides protections for the injured worker (both those with and without an attorney) by requiring a BIIA Judge to sign off on the agreement. Both self-insured employers and State Fund employers need this important tool to help resolve difficult claims issues.

WAGE SIMPLIFICATION
There have been a glut of bad court cases that unfairly require employers to pay time loss benefits based upon the inclusion of medical benefits as part of wages – benefits that aren’t even being used at the time a worker is injured. We also have one of the most complicated, discriminating, and time consuming methodology for determining time loss compensation. As supported by the WSIA, wage simplification is needed to: define “wages” (as it has always been defined) to only include wages and not fringe benefits; establish a flat rate that is fair to all workers, regardless of their marital status and number of children; average wages actually earned, rather than assuming the income earned by a worker; and to provide predictability for all parties involved. This issue has been around for five years and isn’t going to disappear. All employers and injured workers need a fair, understandable, and predictable basis for payment of workers’ compensation benefits.

Legislative Reception January 12, 2006 in Olympia
The Washington Self-Insurers Association invites legislators, representatives from the Department of Labor & Industries, and the members of the Board of Industrial Insurance Appeals to a lunch on the day WSIA's Board of Directors holds its quarterly meeting. This is a very important event and we hope you will all be able to make it. Legislators listen to what their constituents have to say. You represent some of the largest organizations in the state, from all over the state, and your voice is important. Don't miss this opportunity to tell your legislators what you think needs to be done to reform workers' compensation. The reception will be held Thursday, January 12, 2006 from 5:30-7:00 p.m. at the Red Lion Hotel in Olympia. For more information, contact the WSIA office at 800-736-7296, or write to us at info@wsiassn.org.

Legislative News
WSIA has set its priorities for the upcoming 2006 Legislative Session. To no one’s surprise, wage simplification, compromise and release, and expanded self-insured authority top the list. On wage simplification, there are discussions about alternative proposals to the bill that has been offered up for the past three years. While no new language is available for review yet, we hope to have something soon. The entire employer community has continued to support a flat rate, a narrow definition of “wages,” averaging of wages to get a fair picture of pattern of employment and varying rates of pay issues, and a cost-of-living adjustment based on the Implicit Price Deflator. On compromise and release, discussions are continuing on what would be the best model to propose in order to gain the approval of the Democrat-controlled Legislature. And in regard to the self-insured authority bill, WSIA has been meeting fairly regularly with organized labor and the trial lawyers to see if a compromise can be reached. Progress continues to be made, and both sides are honestly working to achieve something that will meet both self-insured employers and injured workers’ interests.

The rest of the employer community is focusing on stopping any sort of rate increase prior to the conclusion of the audit of industrial insurance funds, as required by a bill that passed during the 2005 Legislative session.

The Department of Labor and Industries is proposing very little in the way of workers’ compensation and safety legislation for 2006. They have a proposal that will allow workers to make one change in their pension choice, after an initial decision was made years earlier. They have a proposal to allow for the filing of worker’s compensation claims with State Fund employers, as a way to ensure that those employers find out that an injury has occurred. And they have a bill that will help clarify the basis on which the Department must seek a warrant in searching a worksite on WISHA safety inspections. To the Department’s credit, they have worked closely with both labor and the employer community prior to putting out its legislation. This is a marked and welcome change from prior years.

Political Action Committee Contributions
State government is in dire need of change. The winds of change are going to blow strong in 2006. We need to make sure we are helping fuel the change!

Your organization will soon receive a solicitation for the WSIA Legislative Fund. If you work for a private organization that has contributed to us before, please give as much as you possibly can – over and over again. Your contributions are what fuel our efforts at reform in the Legislature. Without your support, it is an uphill fight. We greatly appreciate your support over the years, and we look forward to your continuing support of the Legislative Fund.

If you work for a private organization that has not contributed to us before, here is your chance to make a big difference. Even if you cannot contribute great sums of money, every little bit – every contribution – helps to pay for direct contributions to candidates that support our legislative stances. Whatever you can do will be put to good use, and is a great sign of support for our efforts.

If you work for a public or non-profit organization, which is prohibited by law from contributing to political campaigns, we hope that you will consider personally donating to the WSIA Legislative Fund (no matter what the amount). Every little bit gets us to our goal of raising and contributing $50,000 during this next campaign cycle. We want all of you to be part of our success.

If you have any questions about the WSIA Legislative Fund, or you would like to donate, please contact Dave Kaplan at (800) 736-7296 or send an e-mail. Please be sure to put "PAC Question" in the subject box. Thank you!

Updated, November 2005