A cost-benefit analysis: implementing temporary disability insurance in Washington State

Abstract

Five states and Puerto Rico currently provide disability insurance to persons unable to work due to temporary disability. No states have adopted such policies since 1969. Labor unions and other advocacy groups have advanced bills in Washington and Oregon that would establish a public disability insurance plan to provide partial wage replacement for serious illness, accident and pregnancy. This paper estimates annual costs and benefits for a temporary disability insurance program in Washington State under the assumption that it would mirror the disability provisions in California without paid family leave.