Madison Reporter

Wisconsin Manufacturers & Commerce (WMC) has released a video explaining the recent inclusion of a Worker’s Compensation Fee Schedule for hospital charges in the Wisconsin State Budget. This measure, passed by state lawmakers, marks a notable policy change aimed at controlling medical expenses for employers across Wisconsin.

The fee schedule was described as a long-standing legislative priority for WMC and its members. The organization represents nearly 4,000 businesses statewide and has argued that high workers’ compensation medical costs have reduced employer competitiveness in Wisconsin.

Under the new law, the Wisconsin Department of Workforce Development (DWD) will divide the state into five regions based on geography and commercial market price similarities. For each region, DWD will set fees for hospital procedures at the 75th percentile of group health or self-insured payments to hospitals for those procedures, plus an additional 20%. The agency is required to establish these regional fee schedules by July 1, 2027; they will take effect once published.

Scott Manley, WMC Executive Vice President of Government Relations, said: “The new fee schedule could result in significant savings for employers, as workers’ compensation medical charges are typically much higher than those for group health.”

Manley noted that while the legislation does not address all concerns—specifically that it applies only to hospital charges rather than all workers’ compensation medical payments—it is nonetheless seen as progress. “Like any negotiation, we didn’t get everything we wanted,” he said. “Regardless, the fee schedule that was passed into law is an excellent step in the right direction — it’s a foundation we can build upon and expand in the future.”

The changes come amid ongoing efforts by business groups to make operating in Wisconsin more cost-effective.