The State of Washington is in the process of taking drastic action to reform its workers' compensation system as it faces potential insolvency within the next 5 years. A package of bills is advancing that would limit periodic benefits for older workers, restrict medical treatment and reduce costs of the ailing system.
The reform comes on heals of a bitter and contested failed ballot referendum last fall that would have privatized workers' compensation coverage. While the referendum did not succeed, legislators claim that a massive deficit is threatening the solvency of the entire system and that it needs to become much more restrictive in providing benefits.