By MALLORY GRUBEN
Ten unions are urging the City of Vancouver to sign up for the state-run workers compensation system and scrap a self-insured program that has too often denied injured workers’ claims.
In Washington, employers can get workers compensation insurance coverage two ways: through the “state fund,” or through self-insurance. Under the first option, the employer pays a premium to a state workers compensation insurance fund managed by the Department of Labor and Industries (L&I). When workers are injured, they file a claim with L&I, the agency decides if that claim is eligible for benefits, and then the state fund pays for wage replacement and eligible medical costs. Under the second option, the employer pays out benefits directly to the worker. They also handle claims decisions, so usually they hire a third party administrator to help.
Vancouver has been self-insured since 1977. In the 2023 legislative session, several Vancouver firefighters represented by Fire Fighters Local 452 testified that their claims had been wrongly denied by the city’s third party administrator, largely to save the city money. They advocated for House Bill 1521 to require “good faith and fair dealing” by self-insured employers. The version of the bill that passed added the good faith requirement only to self-insured cities, so supporters plan to return next session to extend it to cover all self-insured employers.
Local 452 also signed onto a letter urging city council members to change Vancouver’s insurance plan, and was joined in the letter by the other unions representing workers in the city: Fire Fighters Local 4378, Vancouver Police Command, Vancouver police and fire guilds, Machinists District Lodge W24, Office and Professional Employees International Union Local 11, Plumbers Local 290, and AFSCME Council 2. The letter.
“Due to the hardships our members have gone through, please stop being self-insured for industrial insurance and return to the Washington Department of Labor and Industries state fund system,” the letter says.
On Sept. 18 at a council work session, city council members reviewed that letter and heard an overview of how the state plan and self-insurance differ. Most council members expressed interest in moving to the state fund but asked city staff to gather more details. Another meeting on the matter has not yet been scheduled.
