In November Washington voters will decide on whether to replace the current state workers’ compensation monopoly with a “three-way” system of private carriers, the state fund and self-insurance. Such a system would allow private insurance providers for the first time since workers’ compensation was implemented in 1911. If Initiative 1082 passes, the conversion would begin immediately, but businesses would not be able to purchase workers’ compensation policies from private companies until July 1, 2012.

Today, Washington is one of only four states that do not allow private competition in the workers’ compensation industry. The others are North Dakota, Wyoming, and Ohio. Workers’ compensation insurance is mandatory in this state and businesses must purchase insurance through the state fund, run by the Department of Labor & Industries (L&I), or else self-insure, which is also regulated by L&I and reserved for only a relatively small number of large businesses.

Read the Policy Note here.

The full Policy Brief is available here.