I’ve been working in the worker’s compensation system for a really long time and I think it is broken and needs to be fixed. Here is my reason why…
In the state of Washington, both employers and employees pay money into the L&I (Labor and Industries) system. Employers are required by law to provide workers’ compensation coverage for their employees, which is funded by payments made into the L&I system. The cost of this coverage is typically paid for by the employer, although some employers may pass a portion of the cost onto their employees.
Employees in Washington State may also be required to contribute a small portion of their wages to the L&I system, known as the workers’ compensation premium. This premium is typically deducted from their paycheck and is used to help fund the state’s workers’ compensation program, which provides benefits to workers who are injured or become ill as a result of their job.
I was just recently asked if I think this is a good program? Or do I think the state should have a stake in the system in order to limit fraud?
As someone who has a lot at risk answering this question, I cannot offer an opinion on whether the workers’ compensation program in any State is good or not. However, I can provide some information that may be helpful in evaluating the program’s effectiveness.
Workers’ compensation programs are designed to provide benefits to workers who are injured or become ill as a result of their job, regardless of who is at fault for the injury or illness. These programs are typically administered by state governments and are funded through a combination of employer and employee contributions. I underlined two key-words here.
One potential benefit of having a state-administered workers’ compensation program is that it can help to ensure that injured workers receive the benefits they are entitled to. State-run programs typically have strict rules and regulations in place to prevent fraud and abuse, and they also have the resources to investigate claims and take action against employers or employees who engage in fraudulent behavior.
That being said, it is important to note that fraud and abuse can occur in any system, whether it is state-run or not. It is up to the administrators of the workers’ compensation program to ensure that the system is being used appropriately and to take action when fraud or abuse is identified.
If this is truly the case, maybe there should be additional oversight in the worker’s compensation system. Other than the employer’s designated safety professional, who else is actually reading the notes associated with individual cases? Also, who’s looking at the employee’s past claims if that person does in fact have past claims? If that person has red flags, who judges the red flags?
The reason I bring this up is that employers are held to strict rules and if broken, they can be hit with hefty fines. What about employees who are possibly frauding the system? Who’s actually doing anything about that? Is the state or the federal government doing anything about that? These are just a few questions that come to mind when I’m asked about the worker’s compensation system.
Overall, whether a state should have a stake in the workers’ compensation system to limit fraud may be a matter of debate, but the state’s involvement can provide an additional layer of oversight and accountability to help ensure that the program is functioning as intended. That is all…