Montana Vows to Reform Workers’ Compensation Insurance

Legislators in Montana are making workers’ compensation reform a priority in 2011, having introduced three bills aimed at lowering rates:

1. House Bill 87 would cap the amount that doctors and those in the health care profession could charge for workers’ compensation injuries to reduce costs. The bill was tabled, however, in favor of House Bill 334.
2. House Bill 334 would provide for the closure of claims, a process to reopen medical claims, establish a medical director and medical review panel, create a list of doctors injured workers would have to choose from for treatment, and revise permanent partial disability benefits. The bill is supported by health care representatives and doctors, but is opposed by labor groups who say the burden of the workers’ comp system would fall too much on injured employees.
3. Senate Bill 243 is similar to HB 87, and has the backing of the governor, lawyers, and labor and management groups. Insurance groups generally oppose the bill because they say it doesn’t lower costs enough.

“There is a very strong commitment from the House and Senate to make workers’ compensation reform a priority in this session,” said Bob Biskupiak of the Independent Insurance Agents of Montana. The state has the highest workers’ comp insurance rates in the nation, as well as the highest number of injuries per capita, he explained.

Recently, HB 334 was endorsed by the Montana House Business and Labor Committee and is headed for the Appropriations committee. The National Council on Compensation Insurance Inc. said the bill would bring savings of 20 percent to 44 percent in the first year alone, or guaranteed savings of $84 million to $183 million.

The bill would end medical benefits for work-related injuries five years after the injury. However, the Big “I” of Montana said HB 334 is unlikely to pass as is because it is viewed as too “aggressive” against injured employees.

“(All) the bills are very contentious,” Biskupiak said. He noted each of the bills has strengths and weaknesses. “Our hope from an insurance agent representing association is that one bill will come out of this that represents a compromise. If you believe the House and Senate leadership, the status quo is not acceptable.”

Topics Workers' Compensation Talent Montana