HELENA — Rep. Scott Reichner, R-Bigfork, is the designated point man for reforming Montana’s workers’ compensation system, and he predicts his bill —  rather than alternate legislation — is certain to clear the legislative process.

He has reason to be confident.

His House Bill 334 is expected to pass the House because the only rival legislation there has died in committee. And in the Senate, his legislation appears to be the chosen path to address Montana’s distinction of having the highest workers’ compensation rates in the country.

“The GOP caucus is united on Reichner’s bill,” said Sen. Jon Sonju, R-Kalispell.

“It’s a very good bill. Scott’s done a great job on it and we’re excited to get it over to the Senate,” said Sen. Bruce Tutvedt, R-Kalispell, who is part of the Republican leadership as Senate President Pro Tempore.

Reichner contends HB 334 will deliver immediate as well as long-term reductions in workers’ compensation rates.

The bill’s fiscal note projects that it would cut rates in Montana by 20 to 40 percent when it takes effect this July, saving up to $183 million, and it would cut rates by an additional 10 to 15 percent over the next three to five years.

Reichner explained that the bill does this primarily by changing the time periods in which workers can make claims, effectively allowing them to participate in workers’ compensation for a maximum of seven years, if necessary. Permanently disabled workers still will be able to receive benefits indefinitely.

The current system is “bloated,” he said, primarily because of the duration of claims. The workers’ compensation fund pays out more than half of its money  to claims that have existed for more than five years. That’s because the system allowed claimants to “keep re-upping” every five years, Reichner said.

“We keep people on forever,” Reichner said. “It’s like an insurance policy. There is no closure.”

Reichner’s colleague, Sen. Ryan Zinke, R-Whitefish, has introduced an alternative bill that would closely reflect the findings of a labor panel that has worked on the problem for several years.

That bill, Reichner said, would lead to gradual rate reductions and no significant immediate rate relief, and he predicts it will face stiff opposition because it relies heavily on reducing payments to medical providers.

Zinke said he introduced it knowing full well that HB 334 would be the legislative vehicle for workers’ compensation reform, but he wanted all aspects of the issue to be available to the committees that review the matter.

Zinke said he would like to see an independent, impartial panel be responsible for reviewing cases where workers run into the seven-year “fence,” to ensure they aren’t arbitrarily locked out of the system when they still may require benefits.

“And the thing I’m adamant on is that any savings [from reforms] go back to businesses either in dividends or rate reductions, but not to the state fund,” Zinke said, adding that he does not want to see expenditures such as the recent construction of a $38 million workers compensation building in Helena.

Zinke said he will carry Reichner’s bill when it reaches the Senate. “I want to limit the governor’s choice to one good bill,” he said.

Reichner says his bill did not ignore the labor panel’s recommendations but took the best elements and took them a step further.

Unions have strongly opposed Reichner’s bill, partly because it would allow claimants to choose their primary medical provider only once and only the primary provider can refer the worker to surgeons, physical therapists and other specialists.

If the worker wants a different primary provider, the selection would have to be approved by a state panel.

Reichner said the purpose is to end the practice of “doctor shopping” where claimants can select their own specialists. “Right now, you just go to anyone you want,” Reichner said.

The bill will amount to the largest workers’ compensation reform in the state’s history, Reichner said.

“This is THE jobs bill of the session,” Reichner said, stressing that Montana’s rates are currently far higher than all of its neighboring states.

Montana’s rates are more than 10 times higher than North Dakota’s, a major reason why there are far more oil companies tapping the Bakken oil field in North Dakota than there are in Montana.

Some that are drilling in Montana are only staying because they anticipate the Legislature will do something to lower rates in Montana, Reichner said.

“We’re so far out of the game right now that it’s become a huge hindrance to job creation,” he said, noting that Montana workers’ compensation rates were the number one concern of business managers and owners who spoke at a legislative listening session in January.

“This is their number-one most mentioned deterrent to job growth and pay raises,” he said.

Reichner said he anticipates HB 334 will be well-received by Democratic Gov. Brian Schweitzer, who stressed the need for workers compensation legislation during his State of the State address.

“We look forward to working with the governor,” Reichner said. “It was clearly one of his major concerns.”

Reporter Jim Mann may be reached at 758-4407 or by e-mail at jmann@dailyinterlake.com.