The National Academy of Social Insurance (NASI) released its annual workers’ compensation report today. For 2014 (there is a data lag), Washington’s benefit costs were the highest in the nation at $825.33 per covered worker. The states with the next highest benefit costs were California ($776.86), Alaska ($682.06), and Wyoming ($665.56). Washington has consistently ranked first by this measure.

Washington ranks third in benefit costs as a percent of covered wages (1.51 percent). West Virginia was first (1.59 percent), followed by Montana (1.52 percent).

Benefit costs are the best indicator of the costs of the workers’ compensation system and the best way to compare our system to those of other states, as we’ve explained in detail here and here.

The NASI report was released in conjunction with a new U.S. Department of Labor (DOL) report on workers’ compensation, “Does the Workers’ Compensation System Fulfill its Obligations to Injured Workers?” The report is in response to a letter written last year by several members of Congress, including Senator Patty Murray, expressing concern about state workers’ compensation laws. The DOL report suggests that the government should consider “whether to increase the federal role in oversight of workers’ compensation programs.”

Additionally, last month the Department of Labor & Industries proposed increasing workers’ compensation rates by an average of 0.7 percent in 2017. According to the Association of Washington Business, rates could be reduced by 2.3 percent on average and still break even. The final rate decision will be announced in December. (In 2016, rates increased by an average of 2 percent.)