Approve I-1082 to open workers' compensation to private competition

INITIATIVE 1082, which would open up workers' compensation insurance to private competition, is heartily endorsed. This business-backed initiative would modernize workers' comp, making Washington more attractive for expanding a business and creating jobs.

Employers will still be required to cover workers. I-1082 changes where they can buy coverage.

Now, large employers can self-insure, and most do. Smaller employers, singly or in groups, are required to buy coverage from the Department of Labor and Industries. L&I is a state monopoly — and is subject to long-standing complaints that it charges too much and its service is bad.

The most telling complaint is that the state does too little to get injured workers back on the job, and allows too many to give up and take lifetime pensions for total disability.

Here is a comparison. In the year ended June 30, L&I awarded 930 lifetime disability pensions, and the self-insured companies, following the same rules, allowed another 204. In 2009, Oregon awarded just 13 — which includes its state fund, private carriers and self-insured.

Oregon's advantage is case management. Oregon's policy is to get workers back, even on light work, before they begin to feel less like an employee and more like a dependent. Get them with co-workers, and put a paycheck in their hands.

The advantage is more than that. Since 1966, Oregon has allowed private competition. The advantage there is not only that rivals try harder and that choice is good. It is also that allowing private companies in the mix makes it easier for the system to change and keep Oregon competitive with other states.

For its system to work, Oregon has to carefully regulate and audit the insurance companies — and the same will have to be done here.

Forty-six states do it like Oregon. Only four still have state monopolies: Ohio, North Dakota, Wyoming and Washington.

It is time to change. The Times urges voters to approve I-1082.