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Montana Supreme Court Upholds State Law That Cuts Off Worker's Comp Benefits

By KFBB News Team

Story Created: Nov 4, 2009 at 5:54 PM MST

Story Updated: Nov 4, 2009 at 9:00 PM MST

In a 5-2 ruling, the Montana Supreme Court has upheld a state law allowing insurance companies to cut off worker's compensation payments for those who are permanently disabled and of retirement age. The court ruled a state law ending benefits for disabled workers when they are eligible for Social Security payments is constitutional. Officials with the Montana State Fund say they are pleased with the decision.

Carl Kochman, Team Leader for the Montana State Fund, explains, “The cost of that ruling should it have come down the other way and found the statute to be unconstitutional, would have been substantial, somewhere between $93-$116 million for the old fund, and around $183 million or so for the new fund. The Montana State Fund costs would have been born by our policy holders, so very possibly they could have seen even double digit rate increases on their worker’s comp insurance, so we’re very happy.”

The Montana State Fund writes worker’s compensation insurance for approximately 27,000 businesses.

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AL said on Monday, Nov 9 at 12:56 PM

I don't live in Montana ...Im not going to pay for some insurance company's obligation...Im going to fight this.People of Montana....ARE YOU ???

vdgd said on Thursday, Nov 5 at 7:57 AM

haha

v said on Thursday, Nov 5 at 7:57 AM

dgg

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