Washington Administrative Code › Title 296 - Labor and Industries, Department of › Chapter 296-17B - Retrospective rating for workers' compensation insurance › Section 296-17B-010 - Introduction and overview

Current through Register Vol. 24-14, July 15, 2024
Retrospective rating (retro) is a voluntary financial
				incentive program offered by the department of labor and industries to
				encourage improvements in workplace safety.
Chapter 296-17 WAC defines the standard method for determining
				the price of workers' compensation insurance for employers insured with the
				state fund. All employers insured with the state fund must pay the accident
				fund, medical aid fund, and supplemental pension fund premiums established in
				that chapter.
Employers who participate in retrospective rating bind
				themselves to the rules of the retrospective rating program found in this
				chapter. Under these sections, a participant's ultimate cost of workers'
				compensation insurance will be different than under chapter 296-17 WAC.
Employers participate in retrospective rating because it
				creates an opportunity to earn refunds of premiums they are required to pay
				under chapter 296-17 WAC. However, participation involves risk: Participants
				not successful in controlling losses can be assessed additional
				premiums.
Employers control losses by preventing workplace illnesses and
				injuries, and helping injured workers return to work.
Employers that participate in retro can enroll either
				individually or as members of a sponsored group. Enrollment is for a one-year
				coverage period, but it is possible for employers to join a sponsored group
				after the group's one-year coverage period has begun, at the beginning of a
				calendar quarter.
After a coverage period is over, the department evaluates
				premiums and claims losses and determines retro premiums according to these
				rules. If a retro group's or an individually enrolled employer's retro premiums
				are less than the standard premiums paid initially, that firm or group will
				receive a refund. If the retro premiums are more than the standard premiums
				initially paid, the firm or group will be assessed the additional amount.
				Calculation of retrospective premiums is defined further in this chapter. The
				department goes through this annual adjustment process three times for each
				coverage period.
The department will repeat the studies that resulted in the
				hazard group assignments and changes to retrospective plan tables that are
				shown in WAC
				296-17-901,
				296-17B-300,
				296-17B-560,
				296-17B-830, and
				296-17B-910 through
				296-17B-990. The repeated studies
				will determine whether the results are consistent with the expectation of
				improved fairness in the distribution of the retrospective rating refunds among
				participants. These repeated studies will be done by April 1, 2020.
The department will evaluate and if necessary update the tables
				beginning at WAC
				296-17B-910 every five
				years.
Statutory Authority:
				  RCW
				   51.18.010 and
				  51.04.020(1).
				  12-21-054, § 296-17B-010, filed 10/15/12, effective 12/14/12. Statutory
				  Authority:
				  RCW
				   51.16.035,
				  51.16.100,
				  51.04.020(1), and
				  51.18.010. 10-21-086, §
				  296-17B-010, filed 10/19/10, effective
				  11/19/10.