Washington has recently adopted legislation (Substitute House Bill 2409 that established Revised Code of Washington 51.14.179) that will impose new licensing and other regulatory requirements on workers compensation Third Party Administrators (“TPAs”) that contract with one or more self-insured employers to handle their claims. Specifically, effective July 1, 2021, all TPAs administering workers compensation business for self-insured employers must be licensed by the Washington State Department of Labor and Industries (“Washington DLI”). Per the Washington DLI, such self-insured employers have used TPAs for a long time in Washington, but this is the first time there will be a requirement to obtain a TPA license.
To become eligible for a TPA license with the Washington DLI, a business entity must:
The Washington DLI is finalizing the TPA license application materials and expects to distribute them soon. According to the Washington DLI, if a TPA does not obtain a TPA license by July 1, 2021, it will not be authorized to manage workers compensation claims for self-insured employers in the state of Washington.
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