Montana Workers' Comp: Premiums to drop July 1

And other changes of note

By Chuck Turner, Vice President, Payne Financial Group

Montana employers are set to enjoy considerable premium savings on their workers' compensation insurance come July 1. The 2011 Montana legislature, through House Bill 334, passed a substantial workers' compensation reform package. The overall impact: this legislation is projected to save employers over 22 percent on a portion of premium dollars they now pay. This is in addition to a minus-5 percent rate adjustment already scheduled.

The following is a summary of the major changes to Montana Workers' Compensation:

1. Termination of Medical Benefits at 60 months
   1. Under old law, an injured employee's medical benefits ended after 60 continuous months without a new doctor's charge.  Under the new law, most medical benefits will end 60 months after the day the employee was injured, unless extended by a panel of medical doctors.
   2. Cost savings are estimated at -12.1%.

1. Choice of Health Care Provider
   1. Under old law, the employee chose his health care provider.  This is switched under the new law as Montana has moved to an employer choice system.
   2. Cost savings are estimated at -8.5%.

1. Medical Fee Schedule
   1. Under the new law, the maximum medical fees that can be paid are frozen at the levels set on 12/31/10.  This freeze in rates will stay in effect until 6/30/13.
   2. Cost savings are estimated at -2.3%.

1. Permanent Partial Disability Awards
   1. Under the new law, the thresholds necessary for an employee to be entitled to a PP award have been raised.  Also, the number of weeks used in determining a PP award has been increased.
   2. Cost savings are estimated at -1.7%.

1. While the balance of changes under House Bill 334 is not projected to generate much in cost savings, they will hopefully continue to improve our Montana Workers' Compensation system.  The balance of this legislation: 
   1. Excludes coverage for injuries suffered during personal breaks away from the work place or while engaged in voluntary social or recreational activities.
   2. Requires the Department of Labor to establish treatment guidelines.
   3. Broadens benefits to give back the first 4 days of wage loss for an employee who's unable to work for 21 days or longer.
   4. Permits an injured employee to accept a negotiated lump sum settlement of future medical benefits.
   5. Effective 7/1/13, changes vocational rehabilitation-type benefits.

We at Payne Financial Group are committed to keep you informed and up to date as these reforms are rolled out.  Don't hesitate to call your PFG agent for any questions you may have.