Bill > SB6136

This bill aims to increase transparency in how the state sets premium rates for its workers' compensation program, which is managed by the Department of Labor and Industries (L&I). The bill's findings section explains that currently, L&I sometimes artificially lowers premium rate increases for certain industries, known as "risk classes," below what actuarial principles would dictate. This practice, often subsidized by using contingency reserves (funds set aside for unexpected costs), is not clearly explained to the public, obscuring the true costs of the program and hindering necessary reforms. To address this, the bill mandates that L&I must publish the "actuarially indicated rate" for each risk classification, which is the rate calculated based on generally accepted actuarial principles. Furthermore, if the director of L&I decides to limit a premium rate increase for any risk class below this actuarially indicated rate, the department must provide detailed information about this decision. This includes specifying which rate classes were limited, what their proposed rates are, what the rates would have been without the limitation, and how this limitation impacts the premium rates for other risk classes. This information must be published on L&I's website, included with proposed premium rates, and submitted to legislative committees and the workers' compensation advisory committee.