By: Jonathon Ambarian
Many Montana businesses will see a reduction in their workers’ compensation insurance costs, after Montana State Fund announced its rate changes for the next year.
On Friday, the State Fund’s board of directors approved an average 8.6 percent reduction in premium costs. The new rates will take effect July 1.
This is the 13th consecutive year the State Fund’s average rates went down or remained the same. President and CEO Laurence Hubbard said the rates are now about 60 percent lower than they were in 2007 – and the lowest since the fund was created in 1990…
Rosendale, Montana’s insurance commissioner, said in a statement that the rate reduction was good news, but he believes it could have been even large if not for a $28 million fee the state charged on the fund to help fill a budget shortfall during the 2017 special legislative session.
“I’m pleased to see a reduction in the State Fund’s rates after I approved the biggest loss costs decrease in eight years,” he said. “Unfortunately, this rate reduction is not as big as it likely should be because of the $28 million that was redirected from the State Fund last year. Any decrease in work comp insurance rates is good for Montana’s small businesses, so I’m happy to see rates continuing to decline.”
Read more at KTVH