Last Tuesday, eight House members proposed a reform to the state’s workers' compensation system that keeps settlements but makes several changes to a broader Senate measure. The plan is built off of Senate Bill 5566 allowing lump sum settlements to claims made by injured workers saving the state $1.2 billion in its first two years of implementation.

According to the Department of Labor and Industries, approximately 85 percent of compensation costs come from only 8 percent of all claims, which involve workers who are receiving benefits for an extended period or have lifetime pensions. To curb these costs, businesses have backed the settlement option.

Governor Christine Gregoire along with Senate and House leaders have made reforming Washington’s workers' compensation system a high priority after the state auditor’s office last year said reserves were at risk of insolvency. Gregoire has said she wants savings enacted this year to avoid a hike in the payments businesses are required to pay into the system.

The new moderate plan eliminates settlements from medical claims – a provision that was included in the Senate bill. The plan also enhances safeguards for workers who can’t afford a lawyer and asks for a study to be completed after three years to assess the plan. There is currently no estimate on how much the moderate plan will save the government.

“It’s a good proposal that not only preserves the essential elements of Engrossed Senate Bill 5566, but also adds even more protections for injured workers, which seemed to be the main concern of the bill’s opponents,” said Kris Tefft, Association of Washington Business government affairs director on workers’ compensation issues.

At this time, it is uncertain whether the Senate Bill or the House member’s proposal will make it to the floor for a vote.

More from The Spokesman-Review and The Olympian.