June 20, 2018

Montana State Fund Board Declares Decrease in Rates for upcoming Policy Year

The Montana State Fund (MSF) Board of Directors adopted an overall average decrease of twenty percent (20%) for premium rates effective July 1, 2011. Rates may differ as individual class codes can vary up or down each year from the prior year rates, depending on the average losses for all the businesses in the class code.

House Bill 334 (HB334) enacted by the 2011 Montana Legislature played a significant role in the reduced workers’ compensation costs. MSF’s decrease was based on the expected impacts of HB334, favorable trends for indemnity (wage loss) costs, a small decrease in claim frequency and continued but stabilized level of increases in medical costs. Most of the provisions of HB334 take effect for injuries that occur July 1, 2011 and later.

The rate changes go into effect July 1 and are the most significant seen in Montana since the early 1990s, said Laurence Hubbard, State Fund CEO and president.“There was some very thoughtful discussion and comments on how to set the rates this year”, Hubbard continued. “The Montana State Fund Board considered server alternatives , including the possibility of an eighteen percent (18%), but came to a final determination of a twenty percent rate reduction as recommended by management.“

Source: Montana State Fund

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