We have been properly scolded by opponents of I-1082, the initiative that would create a private option for workers comp.
Yesterday’s Afternoon Jolt gave the pro-side “winner” status for its rating from the state budget office which said: “State revenue is estimated to increase $61 million–$75 million over five fiscal years.”
However, we missed the very next sentence, which said: “Costs are estimated to
increase up to $202 million for the state and $47.25 million for local governments over five
fiscal years.”
As our favorite budget wonks at the Washington Budget & Policy Center wrote:
Initiative 1082 (Net state impact indeterminate, but likely negative): This measure would allow private insurers to sell industrial insurance policies (also known as Worker’s Compensation) in Washington State. For injured workers, industrial insurance covers the costs of medical care, missed time at work, and provides a pension for those who are unable to return to work as a result of a serious injury. Under the current system, large employers are allowed to provide their own industrial insurance – that is, they “self-insure” – while most other employers purchase public, or “State Fund” insurance through the Department of Labor & Industries (L&I). Due to a number of unknown factors, the net cost of I-1082 to the state is yet unclear. However, the analysis from OFM identifies a range of potential costs – including lost premium payments from state employees, higher administrative and oversight costs for the Office of the Insurance Commissioner and L&I, legal costs associated with higher numbers of rejected injury claims, and others – which add up to $202 million over the next five years. The analysis found that revenues from additional insurance premium taxes, business & occupation taxes, and fees paid by new private insurers would amount to only $61 million-75 million over the same period.
We stand corrected. I-1082 is officially in the “Loser” column.
