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Monday, March 7, 2011

Washington Workers' Compensation Reform

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.