Montana State Fund Holds the Line on Rates for Policy Year 2013

April 27, 2012

Montana State Fund’s (MSF) Board of Directors announced a zero percent change in rates for the coming policy year effective July 1, 2012.

“The zero percent change follows a 20% average rate premium decrease from a year ago,” said Laurence Hubbard, President and CEO of Montana State Fund, “and that reduction was based on House Bill 334 which was enacted by the 2011 Legislature.” The expected impacts of HB334 are to stabilize and reduce medical costs, and improve overall claim outcomes.

“However, since this law has been in effect for less than one year, our Board believed that results were still too uncertain and that holding the line on rates would be in the best interest of Montana’s business owners,” said Hubbard.

According to Hubbard, the flat rate announcement also reflects the partnership between MSF and our policyholders and their employees to concentrate on safe work environments, and getting injured employees back to work as soon as is medically appropriate.

“This investment in workplace safety and return-to-work plans helps control rising insurance costs and we can see that our policyholders are working to that end,” said Hubbard.

Rates are determined by looking at the types of jobs and business classifications of policyholders, as well as individual loss history. Overall rates for customers may vary up or down depending on their industry and experience. MSF’s rate-making process is very similar to that used by private carriers, making it possible to compare rates.

Montana State Fund provides workers’ compensation coverage to over 28,000 employers in the state, making it the largest workers’ compensation insurance company in Montana.

Press Release Details

  • Contact: Mary Boyle – Communications & Public Relations Specialist
  • Phone: 495-5124