Legislators in Montana have deferred discussions on the privatization of the state’s workers’ compensation system, which serves 26,000 policy holders.
The privatization of the $1.6 billion state fund is an intricate matter, both in practical and political terms as Republicans in the state legislature appear split over the pros and cons of such an undertaking.
US News reported that small businesses may be the hardest hit by the privatization, as they may not be able to find a new carrier because they either carry too high a risk, or do not provide enough economic value to the insurer.
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Furthermore, the report added that businesses that involve high risk, such as logging and trucking, may have to go down the alternative route of pools that carry higher premiums.
Privatization proponents, however, argue that dismantling the state fund would increase competition and result in lower premiums.
Montana lawmakers will resume discussions over the measure in the months after the adjournment of the current session.
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