Insurance Letter 530

Purpose

Announce 2021 maximum rates effective January 1, 2021.

Background

Wisconsin’s maximum Worker’s Compensation rate will increase to $1,094 per week for temporary total disability, permanent total disability and death benefits for injuries occurring on or after January 1, 2021. The new average weekly wage used to compute the maximum rate is $1,641. Using this new wage raises the maximum death benefit for fatal injuries occurring on or after January 1, 2021 to $328,200. 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, 2021. If this benefit rate is changed, a new Insurance Letter will be sent.

The 2021 maximum limit for private vocational rehabilitation services increased by 1.43% to $1,761. 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

The Maximum Wage and Rate Chart has been updated to provide detailed benefit payment information for 2021.

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