KENNEWICK — The Department of Energy is considering options for moving away from its self-insured program for Hanford worker compensation, a program that has been controversial among some labor leaders and ill workers.
A third-party administrator, Penser North America, currently handles claims made to the state Department of Labor and Industries for Hanford contractor workers with on-the-job injuries or who are ill because of work on the site’s environmental cleanup projects.
DOE has approached the state to discuss using the state L&I program for worker compensation for the major new contractors starting work at Hanford.
DOE said workers would benefit from a more streamlined process, in which they would be able to file and check the status of claims directly.
DOE could benefit from having a system that would be more consistent with programs at other DOE cleanup sites.
The incoming Hanford contractors will employ about 6,000 people, and the approximately 2,900 workers at the Hanford vitrification plant already do not use DOE’s self-insured program.
DOE’s self-insurance has been criticized by labor leaders who have questioned why so many claims filed by Hanford workers were denied before a law was passed by the Washington state Legislature in 2018 easing requirements for Hanford workers to get claims approved.
Hanford Challenge, a worker advocacy group, said Hanford self-insured claims were being denied at five times the rate of the claims of workers for other self-insured companies.
A 2018 DOE Office of Inspector General report found that workers lacked trust in DOE’s self-insured program.
The IG investigated after Democratic Sens. Patty Murray and Maria Cantwell said they had heard accounts of worker compensation claims in DOE’s self insurance program being dismissed on arbitrary grounds, tactics bordering on intimidation and actions taken to discredit claims.
The decision on whether to approve claims is made by state L&I, with Penser responsible for administering claims.
Penser has responded to previous allegations, saying it has not used unfair tactics to get claims denied, and that’s supported by the lack of similar allegations for its work for other employers. The Lacey-based company has a long history of serving as a third-party administrator for several employers.
Hanford nuclear reservation employees were told on Thursday that DOE is expecting the state to start a public rule-making process soon to determine risk classes and rates for Hanford contractor workers.
If DOE agrees to move forward with a greater management role for L&I after the rule-making concludes, the change could happen in February.
DOE expects the transition to new contractors for sitewide services and central Hanford cleanup to be finished before the end of this year and is also working to award contracts for the Hanford tank farms and the 222-S Laboratory.
Penser, which was awarded a contract for up to five years in 2019, would continue to manage claims filed before the change and also any claims for workers at contractors who remain covered by the self-insured program. The contract is valued at up to $4.6 million.
Employees still could work with the Hanford Worker Engagement Center in Richland, which helps former and current Hanford employees and their families with occupational health concerns and advice on state and federal compensation programs.
The center is at 309 Bradley Blvd., Suite 120, in Richland, and can be reached at 509-376-4932.
