Workers’ Comp Rates Going Down

Workers and their companies will get a $19 million break next year as rates for workers’ compensation insurance drop by an average of 2.3 percent, state officials said Wednesday.

Gary Moore, director of the Department of Labor and Industries, said the reduction takes effect Jan. 1.

The decision marks the fifth straight year that general premiums covering on-the-job injuries either decreased or remained flat. L&I reduced premiums by $50 million in 1998 and $300 million in 1995. There were no general increases in 1997 or 1995.

As in previous years, the rate cut was made possible by excellent returns on the state’s investments and continued declines in worker claims and costs, L&I spokesman Steve Valandra said.

Moore noted that the 2.3 percent rate reduction is an average for all industry groups.

Employers pay roughly 80 percent of the premium and the workers the rest.

The state-run system pays for lost wages, medical bills and pensions when workers are injured on the job. Many larger employers are self-insured.