Governor Walker recently signed into law Assembly Bill 724 (AB 724), which modified and updated the Wisconsin Workers’ Compensation Act.

This bill represents agreements made between labor and management representatives serving on the state’s Workers’ Compensation Advisory Council (WCAC). This bill of WCAC-approved reforms passed unanimously in both the Assembly and Senate, and includes provisions that benefit both employers and employees.

Major changes favorable to employers include:

  • Lowering the statute of limitations for traumatic injuries from 12 to six years.
  • Limiting an employee’s access to temporary disability payments if that person is terminated due to misconduct or substantial fault.
  • Clarifying that an employer is only liable for the percentage of an employee’s permanent disability that was caused while working for them, not for a prior condition or previous injury.
  • Revoking indemnity payments if an employee is injured due to a violation of the company’s drug or alcohol policy.
  • Allowing for the reevaluation and adjustment of permanent partial disability ratings based on advancements in medical technology and improvements in medical outcomes.
  • Funding for the investigation and prosecution of fraud.

A detailed summary of the bill’s provisions is also available here.

Overall, the new law includes several positive reforms to the workers’ compensation system in Wisconsin. It is a step in the right direction for controlling costs, and has laid the groundwork for continued discussions about medical cost containment options in the future.

The Alliance is interested in keeping this dialogue going among the business community – and with insurers, providers, and legislators – through the state’s WCAC process.

bill signing

Governor Walker signing Assembly Bill 724 (AB 724).

Annette Cruz

Annette Cruz

Annette Cruz was The Alliance health policy consultant. Cruz was responsible for analyzing health policy issues at the state and national level and working with The Alliance Health Policy Committee to develop strategies to influence high impact issues.

Cruz began public service as a staff person in the Wisconsin State Legislature, where she specialized in health and social services policy issues. She later served as a health policy advisor and policy director for Governors Tommy Thompson and Scott McCallum. Most recently she served as the director of government affairs in a consultant role for Blue Cross & Blue Shield United of Wisconsin.

Cruz received her master's degree in health services administration from the University of Wisconsin-Madison, where she also earned a bachelor's degree in Behavioral Science & Law.
Read blog posts by Annette.
Annette Cruz

Pin It on Pinterest