Bill > SB6136

This bill aims to increase transparency in how the state of Washington sets premium rates for its workers' compensation program, which is managed by the Department of Labor and Industries (LNI). The bill's findings highlight concerns that certain risk classes have their premium rates artificially lowered below what actuarial principles would dictate, with the difference being subsidized by other risk classes. This practice, often involving the use of contingency reserves (funds set aside for unexpected costs), obscures the true costs of the program and prevents informed decision-making. To address this, the bill mandates that LNI must publish the "actuarially indicated rate" for each risk classification, which is the rate calculated based on generally accepted actuarial principles. Furthermore, if the LNI director decides to limit a premium rate increase for any risk classification to a level below what actuarial principles suggest, the department must publicly disclose specific information about this decision. This includes identifying the affected rate classifications, what the rate would have been without the limitation, and how other risk classes are impacted by the increase. This information will be published on LNI's website, included with proposed premium rates, and submitted to legislative committees and the workers' compensation advisory committee, ensuring greater public and legislative awareness of rate-setting decisions.

Business and Industry, Labor and Employment

https://app.leg.wa.gov/billsummary?BillNumber=6136&Year=2025&Initiative=false