Large medical and wage claims costs for workers shown to be permanently partially disabled are the major reasons behind the state's high workers' compensation insurance rates, a Montana State Fund analysis reports.
According to The Associated Press, Dan Gengler, the state fund's internal actuary, presented a report last week to the State Fund's board of directors outlining why workers' comp insurance premiums for Montana businesses were the second highest nationwide for fiscal 2008. As a result, state lawmakers are searching for means to reduce costs.
Gengler's report notes claims from workers determined to be "permanently partially disabled" make up 9% of claims but account for 70% of overall work comp costs.
An individual with a permanent partial disability is classified as one with a workplace injury permanently preventing the ability to work. Benefits include wage payments while out of work and medical coverage.
Gengler's report noted such claims take place in Montana at a rate 50% above the average in other states and that medical costs for such claims are two times higher than other states.
The 2008 report noted Montana's work comp rates are approximately $3.50 for every $100 of payroll, 50% the national median of $2.25. (workersxzcompxzkit)
Montana law allows doctors broad authority to determine treatment in workers' comp claims, Gengler said.
Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers' Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-553-6604.
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Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers' comp issues.
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