Fixing work comp a priority
It’s encouraging to see that state lawmakers are pursuing workers’ compensation reform with determined focus and clarity — and that Flathead legislators are leading the charge.
Rep. Scott Reichner, R-Bigfork, has developed some complex legislation largely based on the work of a panel that has been studying workers’ compensation reform for several years.
But Reichner’s bill goes several steps further to provide immediate, significant rate reductions.
The bill is projected to produce rate reductions for employers of 20 to 40 percent if it is implemented this July as proposed, plus an additional 10 to 15 percent over the next few years.
There is urgency in this matter, considering that Montana currently has the unfortunate distinction of having the highest workers’ compensation rates in the nation.
A ranking like that is an obvious, serious hindrance to business recruitment, job growth and the potential for wage increases for just about every business in Montana.
Take the oil extraction industry as an example: Montana employers pay $7,000 per worker per year, while in North Dakota, employers pay about $3,500 per worker.
That is a huge problem.
Reichner’s bill is certain to clear the House, where there is no competing bill, and it probably will pass with considerable Democratic support. It also appears to be the sure bet in the Senate since it has the support of the Republican leadership.
Sen. Ryan Zinke, R-Whitefish, has introduced an alternative bill in the Senate that more closely reflects the findings of the study panel, but having worked on workers’ compensation matters extensively, he has no qualms taking up Reichner’s bill as the Senate’s lead sponsor.
This is not an issue to be addressed with a mishmash of competing bills, because that situation would become quickly clouded by politics.
This is not an issue for partisan gamesmanship.
As Zinke put it, “I want to send the governor one good bill.”
And that’s pretty much what Gov. Brian Schweitzer boldly called for in his recent State of the State address when he correctly described the current workers’ compensation system as bloated.
Montanans will be pleased indeed when this issue is addressed decisively this session.