Montana Workers' Compensation Cost Savings Measures Pay Off

$10 Million Savings for Montana Business

1/10/2008 -- (HELENA) Montana Governor Brian Schweitzer today said that Montana employers may see a drop in their workers' compensation rates come February 1, 2008, thanks to the efforts of the Montana Department of Labor and Industry and the Labor-Management Advisory Council on Workers' Compensation.

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The National Council on Compensation Insurance, Inc. (NCCI), the rate-setting authority for private insurance companies in Montana, recently filed a change with the Montana Department of Insurance requesting an overall decrease of 2.9 percent in Montana workers' compensation costs. That works out to be about $10 million savings for Montana businesses.

Actual application of the rate changes to employers' policies may be done during the policy term or by adjustment at audit following the expiration of the policy. Employers should be receiving notification from their insurance company early in 2008.

The rate reduction is the result of a revised medical fee schedule for workers' compensation medical providers. Medical costs were one of the key areas identified by the Department of Labor and Industry in a year-long study of workers' compensation cost drivers in 2006. For further review, Commissioner of Labor Keith Kelly formed the Labor-Management Advisory Council on Workers' Compensation, composed of representatives of employers and employees and chaired by Lieutenant Governor John Bohlinger.

The Council supported efforts to control rising medical costs while maintaining access to quality health care for injured workers that were contained in HB 738, sponsored by Rep. Scott Mendenhall (R – Clancy) and Sen. Vicki Cocchiarella (D – Missoula) in the 2007 Legislative Session.

Source: Montana Governor