With new changes to Montana’s workers compensation law taking effect July 1st, The Montana State Fund says some businesses could see as much as a 70 percent reduction in costs.
Carl Kochman with the Montana State Fund rode his Harley Davidson down to our Northern Broadcasting studios. That’s where he called the workers comp changes that came out of the recent legislative session the biggest workers comp reform since the 1950’s.
While the average savings are expected to near 20%, Kochman says businesses with better safety records could see 60-70% reductions in their workers comp premiums.
One of the changes to the law includes a five year end to medical benefits on a claim, unless permanently disabled or using a prosthetic.
The actual savings don’t start until July 1st, and Kochman says it will take 5 years before we know how much we really saved.
(Click below to hear clip from Kochman)
Click to Listen
Even with a 20% reduction in workers comp premiums, Kochman says that reduction will keep Montana on the list for some of the highest premiums in the nation, at 4th or 5th. While rankings may not change much, Kochman says the bottom line for businesses will.
Potential legal challenges to the new law? Click below to listen to the full interview with Carl Kochman.
Click to Listen