Bill > HB727

This bill revises Montana's workers' compensation insurance market regulations by modifying how competitive markets are evaluated and monitored. The bill requires the insurance commissioner to annually measure market concentration using the Herfindahl-Hirschman index (HHI), a standard economic tool that calculates market share and competitiveness. If the HHI exceeds 1,800, the market is presumed non-competitive, triggering a public hearing and potential corrective measures. These measures include promoting new insurers, limiting large insurer mergers, enhancing consumer education, potentially restricting the monopoly carrier's premium writing, and implementing regulations to promote competition. The bill specifically includes Plan No. 3 (the state fund) in market concentration calculations, expanding the previous evaluation framework. The commissioner is granted broad discretion to implement additional actions to improve market competitiveness and must provide notice to all stakeholders about any actions taken. The bill aims to ensure a more dynamic and competitive workers' compensation insurance market in Montana by introducing more rigorous and proactive market monitoring mechanisms.

Business and Industry

https://bills.legmt.gov/#/laws/bill/2/LC3070