Representatives of Montana State Fund briefed the Senate Business and Labor and Economic Affairs Committee on the state-run workers’ compensation carrier’s operations, financial position and loss-prevention work.

Nick Mazanec, general counsel for Montana State Fund, told the committee the fund is a not-for-profit workers’ compensation insurer that serves roughly 25,000 policyholders across every county and most industries in Montana. "We insure any business that comes to us, large or small, high risk or low risk," Mazanec said.

Mazanec summarized market and operational performance. He said the fund paid an average 10% rate decrease on July 1, 2024, has not raised its rates in nearly 20 years and has reduced cumulative rates by 61% since its formation. He reported the fund’s reserves (the amount held to pay current and anticipated claims) are about $902,000,000 and that policyholder equity (surplus) stood at about $629,000,000; combined assets approach $1.7 billion when including reinsurance positions and other assets.

Mazanec said the industry-wide improvements are driven by declining claim frequency, better claim management and medical-cost trends that have been lower than projected. Montana State Fund reported nearly 9,000 claims filed in 2024 (plus roughly 1,000 carried over from prior years), and noted workers’ compensation’s long-tail liabilities — including active claims that date back decades — require prudential reserving.

He described Montana State Fund’s safety work: 13 safety management consultants performed more than 1,700 on-site consultations in 2024 to help employers lower claim frequency. The fund also administers legacy liabilities (the “old fund”) for claims occurring before July 1, 1990; Mazanec said the old fund has 324 remaining claimants and an actuarial central estimate of about $38,000,000 in liability.

On coverage lines, Mazanec said Montana State Fund insures a high share of agricultural and construction policyholders and covers many municipalities and volunteer fire departments; it also provides services for injured workers through certified claims examiners and nurse case managers.

Committee members asked about claim timelines and how quickly benefits are paid. Mazanec said the statutory period for claims determinations is 30 days, but Montana State Fund’s metric for the first payment on compensable claims averages about 6.3 days. Senators also discussed the interaction between self-insured employers, private carriers and the state fund, and the distinctive regulatory and actuarial arrangements that apply to each.

Mazanec said dividends have been paid in recent years when financial performance allows; as a not-for-profit carrier the organization returns surplus as dividends to policyholders rather than to shareholders. The presentation underscored the fund’s role as a market stabilizer and safety partner for employers and injured workers.