Workers’ compensation rules may be revised under a proposal by Washington Gov. Chris Gregoire to bring the state out of its financial quagmire. The revamp of the system will generate about $720 million in a span of four years, the governor said.
The “State Fund” of Washington is the seventh biggest workers’ compensation program in the U.S. and includes 2.3 million workers. In her 2011 Policy Brief, she said, “In a system this size, opportunities exist to lower costs and reform unsustainable expenditures.”
Some $560 million out of the $720 million in savings will be made from introducing such changes as reduced pensions, wage subsidies for injured workers, and the expansion of Centers of Occupational Health and Education, which helps health care providers improve their assistance and coverage to injured workers.
The proposed changes in the state’s workers’ compensation system will also help spur economic growth in the state by freeing up more funds for businesses in their expansion plans.
