Join Now Members Only
MONTANA SELF INSURERS' ASSOCIATION

MSIA Legislative Update 4/14/2023 - Week 14

  • Legislative Update
  • HB 178 Heard in Sen Committee
  • SB 165 Common Law Bad Faith Changes
  • HB 313 – PA Independent Practice Bill
  • LC 986/SB 267 – MSF IT and Procurement Changes Introduced
  • LC 4327/SB 260 UTPA Changes Introduced
  • Legislative Action 


As of this writing, the expected Committee work on legislation is pretty much done. The expectation now is budget and larger policy issues the legislature wants to/has to deal with are front and center subject to floor action, amendments and ultimately Conference Committee appointments. A Conference Committee is appointed by House and Senate leadership to work out the differences, if possible, on legislation that has passed both houses, but with different language. Conference Committees can agree to just about any language change they want – they are not limited to the specific language passed in either Chamber. 


As a result, the bulk of our legislative work should be done, but based on the potential of a Conference Committee on a WC bill, we must remain active and present. However, the odds of that happening this session are relatively low, I think. The major issues which could drive the need for a Conference Committee have been dealt with and dealt with convincingly, with clear majorities from the Committees or on the floors. 


The MSF bills are currently dead. The choice of physician, additional presumptions (other than SB 310, below, adding the two cancers to the existing FireFighters presumptions), including the last minute vaccine reaction presumption, benefit increases, the case law reform bill are all currently dead. The IC, UTPA and common law third party action bills should be moving forward and go to the Governor’s desk where he is expected to sign them. We will continue to monitor the legislative action just to make sure things that should be dead, stay dead or if possible, that something that should happen, has that opportunity. 


SB 165                Usher                 R-Billings                         This bill requires first and third party claimants against insurers to provide information and cooperate with an insurers’ claims adjudication process in a timely man(almost certainly dead ner and provides insurers an affirmative defense if they do not. In addition, it amends the Unfair Trade Practices Act (UTPA) so that third party claimants would no longer have a common law bad faith action opportunity against insurers, as created in the BREWINGTON v EMPLOYERS FIRE INS C :: 1999 :: Montana Supreme Court Decision. Under the current law, first party claimants (your insured) have a private right of action against their insurer, should the company not deal in good faith in adjudicating the claim. Third party claimants, under this proposal, would specifically have the same rights, and be limited to those rights. The bill passed final reading in the Senate 34-14 along party lines on 2/16. The bill was heard in the House Business & Labor Committee on 4/4, who passed the bill 18 – 1 on 4/5. The bill passed the House on 4/12 with an 82 – 16 vote. Next stop will be the Governor’s desk and he is expected to sign the bill. MSIA supports this bill.


SB 310                Small                  R-Busby                           This bill adds ovarian and testicular cancers to the list of presumptive illnesses covered for firefighters. This bill has the support of leadership and we were told it will pass and we can expect it to be signed by the Governor. The bill passed the Senate on 2/28 by a vote of 34 – 16, with mostly the more conservative members voting against. It was heard in House Business & Labor Committee on 3/31 and passed by them on 4/5 with a 19 – 0 vote. The bill passed the House on 4/12 with an 92 - 6 vote. Next stop will be the Governor’s desk and he is expected to sign the bill. MSIA opposes this bill but did not testify. 


HB 836               K. Zolnikov        R-Billings                        This bill is an MSF proposal to create a ‘regulatory sandbox’ to allow for additional, limited experimentation within the marketplace. It is not limited to workers’ compensation. The idea is to permit new ideas that do not fit within the regulatory scheme to have some freedom to be tested out, within a somewhat controlled environment. The bill permits these experiments as long as there is a written business plan, no negative impacts to consumers and no negative impacts to the financial solvency of the insurance carrier and it would be limited to 10,000 policyholders. An ‘innovation waiver’ from regulation for a period of up to three years would be provided, reporting would be required, and it only applies to property and casualty insurance. MSF reports they would like to see how it might be applied to return to work and safety programs in workers’ compensation. The bill passed the House Business & Labor Committee on 3/27, passed 19 – 0 on 3/28 and then passed the House on 4/3 with a 97 – 2 vote. The bill was heard in the Senate Business, Labor & Economic Affairs Committee on 4/12 and was passed 10 – 0 on 4/13. The bill is expected to pass and be signed by the Governor. Within the context of return to work and safety programs, MSIA supported the proposal. 


HB 636               J. Kassmier        R-Bozeman                    This bill would reduce the corporate officer/owner threshold for WC coverage exemption from 20 ownership of the business to 10%. The bill passed the House on 3/2 by a vote of 96 - 3. The bill was heard by the Senate Business, Labor & Economic Affairs Committee on 4/4 and passed that day 10 - 0. The bill passed third reading in the Senate 46 – 4 on 4/11. Next stop is the Governor’s desk where he is expected to sign the bill into law. MSIA is monitoring this bill. 


  • MSIA CE Webinar May 4 @ 10a 
  • Extended Use of Physical Medicine for Workers with Low Back Pain, presented by WCRI 
  • Advance Registration Required


Join us May 4, at 10a MST for the next MSIA CE Webinar presented by Dongchun Wang of the Workers’ Compensation Research Institute (WCRI) on her findings from the new Institute study Extended Use of Physical Medicine for Workers with Low Back Pain. 


MSIA members have access to unlimited seats to all our Webinars.

Advance registration is required – contact MSIA by phone text, emailor register through the website, Webinars (mtselfinsurers.org)


Physical medicine (PM) services are commonly used in treating workers with low back pain (LBP) and other musculoskeletal injuries. The report documents the prevalence of extended use of PM services (referred to as extended PM use) among 28 study states for nonsurgical LBP claims. The report also identifies several key factors associated with a higher or lower likelihood of having extended PM use. The findings will be helpful for those who are interested in finding ways to improve coordination of care for the purpose of achieving more consistent care to workers for early recovery. 


Webinar Objectives:


  • How prevalent is the extended use of PM services and how does it vary across states?
  • How is extended PM use associated with overall costs and duration of temporary disability? 
  • What are the factors that help predict the likelihood of extended PM use, focusing on the factors that can be used for better management of claims and care?  


As with all MSIA CE Webinars, members have access to an unlimited number of seats, and advance registration is required. We have applied for one CE credit from the Montana Department of Labor and Industry. Contact MSIA to reserve your seats today! Registration cut-off is Wednesday, May 3. To register, visit Webinars (mtselfinsurers.org).


May the fourth be with you (get it?) at 10a MST! 


  • Annual Medical Fee Schedule Update – Hearing 5/18


The Department of Labor and Industry has released their proposed annual change to the medical fee schedules to be effective July 1. The specific proposed changes are here. [lnks.gd]. The hearing is set for Thursday, May 18, starting at 9a MST. This is a Zoom public hearing. Written comments may be submitted at http://dli.mt.gov/rules or to PO Box 1728; Helena, MT 59624 before May 28. Zoom meeting ID: 860 5783 6868 Zoom meeting passcode: 837526.

NCCI has estimated the overall proposal will have cost impact at + 0.4% and based on that result, will roll those results into the next loss cost filing to be effective 7/1/24.


See you next week!