'Rate holiday' will mean $315 million savings for employers and workers - Washington

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A partial "rate holiday" has been finalized by the Department of Labor and Industries (L&I). The rate holiday will save workers and employers about $315 million in workers' compensation insurance premiums in the second half of this year.

Beginning July 1, employers and workers will not pay the Medical Aid Fund premium for work performed from that date through December 31, 2007. On average, the savings will represent about 34% of total premiums paid into the workers' compensation system for work performed in the second half of the year. Because employers and workers pay equally into the Medical Aid Fund, both will benefit equally.

Combined with this year's overall 2% decrease in workers' compensation rates, which L&I adopted in December, employers and workers will pay about $346 million less in premiums in 2007. The rate holiday is temporary and will end January 1, 2008. Link

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