Last week, L&I proposed a 3.8% average workers’ compensation rate increase for 2025, which is lower than the 5.5% overall increase their actuaries projected. L&I utilized $64 million from its contingency reserves to preserve its philosophy of steady and predictable rates.
While the business community appreciates the moderate rate increase, concerns remain over the supplemental pension fund and whether L&I has the authority to heavily favor specific risk classes over others.
L&I data shows that the supplemental pension fund stands out with a proposed 2.8% increase, far exceeding the actuary’s break-even estimate of 0.1%. In contrast, all other funds either match or fall below the actuary’s break-even projections.
Firefighters’ risk classes have seen significant cost increases since the Legislature approved workers’ compensation coverage for post-traumatic stress disorder (PTSD) in 2018. These risk classes now show a 30% indicated rate increase, but L&I limited the 2025 increase to 15% by drawing from contingency reserves. This trend will accelerate because the Legislature expanded PTSD coverage in 2023 to include first responders and certain nurses.
Overall, most retail-related risk classes have experienced rate increases above the average, reflecting a higher-than-average trend in claim costs. Retail Services is offering a new and improved Safety Ambassador Program to help members lower rates by building a premier safety culture to prevent injuries in the first place.
Public hearings are scheduled on Oct 28 at 10 am (hybrid) or on Oct 29 at 10 am in Spokane.
