Legislation would save state money on workers comp

OLYMPIA – Rep. Matt Manweller, R-Ellensburg, recently proposed three bills aimed at saving money on workers’ compensation in the state of Washington. Manweller said Washington state’s workers’ compensation is the most expensive in the country. As an example, the average rate of pensions in Washington is 2,000 times higher than the national average, he said. The provisions in the bill are based on a study done by the Joint Legislative Audit and Review Committee (JLARC).

One bill would require the state Department of Labor and Industries (L&I) to close a claim from a self-insurer within 90 days of receiving the medical report.

Vickie Kennedy, assistant director for insurance services at L&I said 90 percent of claims are already closed within 90 days. Kennedy said more staff would be required to get to the goal of 100 percent.

The bill and fiscal note, as written, both account for hiring more employees. Joe Kendo, government affairs director, Washington State Labor Council, believes the number is not high enough.

“These are often complex claims,” Kendo said of the 10 percent of claims that do not close in 90 days. “Sometimes it takes more than 90 days to get it done.”

One reason these claims can be complex is when something called segregation happens. This occurs if an individual sustains more than one injury, and after going to a doctor, there is a dispute on whether one of the injuries is fully treated. If L&I closes a claim on one injury and not the other, this causes segregation. Manweller is considering an amendment to give more time than the 90-day limit for segregation cases.

The other two bills are two different suggestions to limit the amount of time a worker can use temporary time-loss benefits. HB 2337 would establish a 60-month limit on temporary total disability payments.

HB 2338 would terminate temporary total disability payments when an injured worker reaches maximum medical improvement (MMI). This means that individuals would stop receiving temporary disability benefits when they have gone as far as they can in their medical care.

“If something goes on forever, then it’s not temporary,” said Manweller. He said if a worker is still on temporary time-loss benefits after either of the proposed caps, that person belongs in another program more designed for the long term. Manweller said 35 states already have a similar system.

“It’s not like I’m proposing some radical change,” he said.

Bob Battles, government affairs director, Association of Washington Business, testified in-favor of HB 2338.

“Most do states do this already,” Battles said. “Once you’ve reached medical maximum fixity, we believe that you should then stop time loss, based on that.”

Kendo said neither of the bills take into account different possible situations workers could face. For instance, he said some workers take longer to recover than 60 months. Regarding the other bill, he said it does not consider the potential gap between MMI and returning to work.

Kendo said some workers might be in a period of re-training after MMI, or others may be waiting on a decision about pension.

Instead he suggested a focus on programs aimed at early prevention and improved safety performance.