WASHINGTON STATE HEALTH CARE AND INDUSTRIAL INSURANCE RATES

AT ISSUE
According to the 2006 Competitiveness Handbook, published by the Washington Alliance for a Competitive Economy, state government health and hospital spending per capita is 10th highest in the country. The percentage of uninsured in the State has increased 4% since 1990, ranking 20th nationally.  Although there is no increase in 2006 workers’ compensation rates proposed by State Department of Labor & Industries, there are fundamental problems with the system. The WashACE Competitiveness Guidebook shows State benefits paid per worker ranks 4th nationally, which implies higher coverage costs among private and State insurance providers.

TRI CITY LEGISLATIVE COUNCIL POSITION
• Small Group Health Insurance: Expand access; eliminate requirement to provide same benefits as in basic health plan
• Mandated Benefits: Reduce requirements that add costs; place moratorium on addition of mandatory benefits to health care plans
• Medical Malpractice: Reduce costs associated with medical malpractice claims
• Medicaid/Medicare Reimbursement: Pursue more adequate reimbursement levels; urge Legislature to urge federal government to increase funding.
• Independent Workers’ Compensation System Audit: Require an audit to ensure that lower rates are sustainable, and reserve levels are adequate, but not excessive. Support legislation similar to SB 6414 from last session.
• Retrospective Rating Programs: Maintain the independence and integrity of “retro” programs.

BACKGROUND
Washington’s individual health care market collapsed in 1999. Availability of individual insurance is slowly returning, but overall health care remains heavily regulated and expensive.  As a result of governmental cuts in Medicaid and Medicare coverage, new governmental regulations, mandated benefit requirements, and labor shortages, employers continue to face double-digit increases in health care coverage.  The workers’ compensation system goal should be to provide effective treatment for employees so they can return to work as soon as possible. Employers should have an efficient system with the lowest possible costs and which is free from fraud and abuse.

For more information, contact the Tri Cities Chamber of Commerce.