Design Highlights
- The proposed 4.9% increase in workers’ comp rates will raise costs by approximately $71 per year per full-time employee.
- After retro refunds, the average cost increase per employee is expected to be around $68 annually.
- This hike translates to an estimated additional cost of $1.37 per week per full-time position.
- Workers in Washington contribute about 24% of premiums, increasing their financial burden amid the rate hike.
- Employers can mitigate rate increases by effectively managing claims and influencing their experience factor.
What’s the deal with the proposed 4.9% hike in Washington State’s workers’ compensation insurance for 2026? Well, buckle up, because it’s a wild ride. This increase isn’t just a random number. It’s a way to cover the rising costs of benefits for on-the-job injuries, and it’s going to hit both employers and workers in the pocket. Yes, you read that right. Everyone’s paying up.
The average cost increase is set to be around $71 per year for each full-time employee. Not exactly pocket change, right? And after retro refunds, it might drop to about $68. That’s a whole $3 savings! Lucky us.
Average cost increase for workers’ comp insurance? About $71 per full-time employee—after refunds, it’s a thrilling $68!
Now, let’s break this down. That translates to roughly $1.37 more per week for each full-time position. You know, the kind of money that adds up over time. The average rate per $100 of payroll in 2026 will be $1.50. Sounds familiar? That’s about what it was in 2022. So, cheers to consistency!
But here’s the kicker: Washington is the only state where workers pay a significant chunk of these premiums—around 24% on average. So, if you’re a worker, you’re still digging deep into your wallet. Washington is one of four monopolistic states that mandate coverage from state funds only, alongside North Dakota, Ohio, and Wyoming.
Last year, rates increased by 3.8%. Some worker classifications took even bigger hits. Law enforcement and firefighters? Double-digit increases. Yikes! They’ve felt the pinch. The cumulative change for city public works and parks? A staggering 22%. It’s like being on a rollercoaster that only goes up.
The rate calculation is a bit of a head-scratcher. Rates are charged per hour instead of a percentage of payroll. So when employee wages go up, the rate stays the same. It’s a strange system, really. Plus, it’s all based on the previous five years of claim costs. If your company has a history of high claims, good luck with that rate hike!
What’s driving these increases? Well, rising costs of medical benefits and claims care, to name a few. Not to mention the financial burden of presumptive PTSD claims. And let’s not forget that the break-even rate was determined at 5.5% last year. So, 4.9% sounds like a bargain, right? Additionally, employers can manage claims to influence their experience factor and potentially mitigate some of the rate hikes. Moreover, advocacy approaches in layman’s terms are being discussed within the community to navigate these changes effectively.
But is it really? The future holds many uncertainties, and workers’ comp hikes are just one of them.
