Wisconsin lawmakers are reviewing Assembly Bill 651, a measure that would revise several aspects of the state’s workers’ compensation system, including an increase in the maximum weekly compensation for permanent partial disability and updates to compromise claim agreements and statute of limitations rules.
The bill is based on a consensus reached by the Wisconsin Workers' Compensation Advisory Council, which provides recommendations to legislators and the Department of Workforce Development.
Andrew Franken, president of the Wisconsin Insurance Alliance, said the bill reflects a process that "maintains balance in the workers' comp market." He noted, "It's a thoughtful consideration of many issues and we historically support the agreement." Franken also said lawmakers have generally viewed the process favorably.
If enacted, AB 651 would raise the maximum compensation rate for permanent partial disability from $454 to $464 for injuries occurring before Jan. 1, 2027. For injuries after that date, the rate would be set at $462.
The legislation also extends the period for supplemental benefits payable to workers with total or continuous temporary total disability, moving the cutoff from Jan. 1, 2003, to Jan. 1, 2020. Insurers would be required to submit reimbursement requests for supplemental benefits electronically.
The bill proposes changes to compromise claim agreements, allowing payments to be made directly to injured employees rather than through financial institution accounts. When the Department of Workforce Development approves a compromise agreement, it would also be required to dismiss any pending applications for hearings and formally close the case.
AB 651 clarifies that Wisconsin’s 12-year statute of limitations for filing a workers’ compensation claim cannot be tolled. The bill also specifies that traumatic injuries requiring shoulder replacement or reverse shoulder replacement, as well as artificial spinal disc and total or partial knee and hip replacements, are not subject to any statute of limitations.
The legislation directs the Department of Workforce Development to dismiss any claim without prejudice if the application does not present a "justiciable" dispute or controversy. AB 651 also updates coverage rules for post-traumatic stress claims filed by first responders and addresses penalties for uninsured businesses.
Wisconsin lawmakers have also been considering other insurance-related regulatory changes this year. Assembly Bill 473, introduced in October, would impose new restrictions on assignment of benefit (AOB) agreements for residential property losses and contractor practices.
The bill would prohibit contractors from advertising or offering to pay any portion of a homeowner's insurance deductible and would bar contractors from representing or negotiating on behalf of policyholders in claims related to exterior damage, such as roof repairs and replacements.
