Nick Mazanec, general counsel for Montana State Fund, told the House Business and Labor Committee that the not-for-profit insurer was founded to provide stable, affordable workers' compensation coverage for Montana employers and workers.

Mazanec said Montana State Fund insures roughly 25,000 businesses, employs about 280 staff and focuses on both employer services and injured-worker outcomes. He described a long-term trend of falling workers' compensation rates: the fund has not raised rates in roughly 20 years, said cumulative rate reductions since 1990 total about 61 percent and the fund implemented an average 10 percent rate decrease in July (policyholders).

He attributed favorable trends to lower claim frequency, stronger claim-management practices, and medical-cost trends. Mazanec said the fund had paid dividends to policyholders in recent years and described reserves and assets: about $902 million in claim reserves, $629 million in admitted assets and roughly $150 million in additional items, for total admitted and related assets around $1.7 billion. He said the old-fund central estimate of liability was about $38 million.

On claims, Mazanec said the fund had approximately 5,270 new-fund claims open as of Dec. 31 and 324 old-fund claims. He described a continuing long-tail of workers' compensation liabilities, noting the fund administers pre-1990 claims as the "old fund" on behalf of the state. He also highlighted safety services: 13 safety management consultants completed roughly 1,750 workplace consultations in 2024.

Mazanec and Heberly answered committee questions about extraterritorial coverage (reciprocal agreements with other states), dividend legality and the mix of high-hazard accounts the fund insures. They provided contact information and invited follow-up for data requests.