INSURASALES

Montana Governor Vetoes Key Healthcare and Workers' Compensation Bills

Montana Gov. Greg Gianforte recently vetoed several state bills concerning medical insurance and healthcare, with significant implications for workers' compensation and insurance coverage. Among these was Senate Bill 394, which sought to include post-traumatic stress disorder (PTSD) as a compensable condition under workers' compensation for first responders such as firefighters, law enforcement officers, and EMTs. The governor cited increased state insurance premiums of about $100,000 annually and concerns over equitable treatment across state employees as reasons for the veto.

Additional vetoed legislation included Senate Bill 422, which would have mandated insurance providers to cover FDA-approved medications for terminal cancer patients in Montana's individual and group insurance markets. The estimated fiscal impact included a $500,000 annual increase for the state insurance plan and potential risk to the financial stability of the Montana University System's insurance plans, with near million-dollar cost implications projected for fiscal year 2026.

House Bill 585, addressing reimbursement rates for physical, speech, and occupational therapists at 122% of Medicare rates, was also vetoed. The veto highlighted concerns over fairness, as the bill did not extend similar rate adjustments to other healthcare providers, alongside substantial projected costs totaling approximately $13 million over four years.

House Bill 643, aiming to restructure payments related to detention centers to increase reimbursements for counties holding prisoners for state or federal authorities, was vetoed due to high projected costs—approximately $24 million over four years. The legislation attempted to address behavioral health waitlist challenges at state forensic mental health facilities but was considered a temporary, incomplete solution.

Governor Gianforte emphasized fiscal responsibility in his veto decisions, noting the need to protect taxpayer resources amidst the state's budget constraints. The vetoed bills reflect ongoing tensions between expanding healthcare and workers' compensation coverage and managing budgetary impacts within Montana’s public insurance and healthcare systems. Efforts continue within some clinics and organizations to override these vetoes, underscoring debate over healthcare access and funding for first responders and other state employees in Montana.