Insurance Letter 527

Date: December 23, 2019

To: Claims Handling Offices for Insurance Carriers and Self Insured Employers

From: Steve Peters, Division Administrator

Subject: Worker's Compensation 2020 Rate Changes- Amended

Purpose:

Amended Announcement of 2020 maximum rates effective January 1, 2020

Background:

The Worker's Compensation Division's Insurance Letter 524 dated December 12, 2019 contained a clerical error. Insurance Letter 524 erroneously reported the new average weekly wage used to compute the maximum rate at $1,575.50. Insurance Letter 524 should have read: Wisconsin’s maximum Worker’s Compensation rate will increase to $1,051 per week for temporary total disability, permanent total disability and death benefits for injuries occurring on or after January 1, 2020. The new average weekly wage used to compute the maximum rate is $1,576.50.

Using this new wage raises the maximum death benefit for fatal injuries occurring on or after January 1, 2020 to $315,300. The maximum burial expense remains $10,000 and the death benefit to unestranged parents remains $6,500.

As of this date, the maximum weekly indemnity rate for permanent partial disability will remain $362 for injuries occurring on or after January 1, 2020. If this benefit rate is changed, a new Insurance Letter will be sent.

The 2020 maximum limit for private vocational rehabilitation services increased by 1.85% to $1,736. When the Department of Workforce Development’s Division of Vocational Rehabilitation (DVR) is unable to provide services to eligible injured workers, insurers are required to pay the reasonable and necessary vocational rehabilitation costs including the costs of services provided by the vocational rehabilitation specialists in the private sector. This change is based on the average annual percentage change in the U.S. Consumer price index for all urban consumers. The new limit applies regardless of the date of injury.

Action Requested:

Please inform all claim handlers of these changes.

Inquiries:

A chart with detailed benefit payment information for 2020 is available on our web site at: WKC-9572-P, Maximun Wage and Rate Chart

If you have any questions, please contact us at (608) 266-1340.

Replaces:

Insurance Letter 524