As part of ongoing efforts to maintain a strong and balanced worker's compensation system, Governor Tony Evers recently signed 2025 Wisconsin Act 145 into law. Effective April 1, 2026, this legislation introduces several updates that will impact employers, employees, and insurance carriers across the state.
For health care organizations in particular, these changes are worth a closer look. While the overall system remains stable, Act 145 introduces adjustments that may influence claim costs, compliance expectations, and how injuries are managed in clinical environments.
A Stable System—With Targeted Adjustments
Wisconsin’s worker's compensation system continues to be recognized for its consistency and collaborative structure. Act 145 builds on that foundation with targeted updates aimed at maintaining benefit adequacy, improving efficiency, and strengthening enforcement.
For health care employers, the structure of the system remains familiar—but several changes could have a more pronounced impact given the nature of health care work.
Key Changes and What They Mean for Health Care Organizations
Increased Benefit Levels May Impact Common Health Care Claims
One of the most notable updates is the increase in permanent partial disability (PPD) benefits, which will rise beginning in April 2026, with additional increases scheduled thereafter. This is a direct acknowledgement that claim costs are rising.
With musculoskeletal injuries related to patient handling, lifting, and repetitive motion being among the most common claims for health care employers, even incremental increases in benefit levels can meaningfully affect total claim costs. This makes proactive injury prevention and effective return-to-work strategies more important than ever.
Expanded Benefits and Evolving Workforce Considerations – Mental Health
Act 145 also expands certain supplemental benefits and continues a broader trend of evaluating coverage for specific employee groups. While PTSS-related coverage expansions are currently focused on public safety and emergency response roles, health care employers should be aware of the growing attention to mental health, workplace stress, and trauma-related exposures across the workforce. These issues are increasingly part of the broader worker's compensation conversation and may evolve over time.
Claims Handling Changes May Improve Efficiency
The law introduces several procedural updates that may streamline the claims process, including:
- Simplified settlement handling and distribution of funds
- Automatic closure of claims upon approved settlements
- More defined requirements for dispute filings
For health care employers managing frequent, smaller claims alongside occasional complex cases, these changes may help reduce administrative friction and improve resolution timelines.
Increased Focus on Compliance and Worker Classification
Act 145 strengthens enforcement around worker's compensation compliance, including penalties for operating without proper coverage and for misclassifying employees.
This is particularly important in health care, where staffing models often include:
- Per diem or PRN staff
- Contracted or agency clinicians
- Employees performing both clinical and administrative duties
Ensuring that all workers are properly classified and reported with your agent is essential to avoiding penalties and ensuring appropriate coverage.
Return-to-Work Challenges in Clinical Environments
As claim costs rise, return-to-work programs become even more critical—but health care settings present unique challenges.
Patient care responsibilities, physical job demands, and licensing requirements can limit light-duty options. However, organizations that proactively identify modified roles – such as administrative support, training, or care coordination tasks – are often better positioned to control claim duration and cost.
Workplace Safety Remains a Key Driver
Health care workers face higher rates of workplace violence, slips and falls, and repetitive stress injuries than many other industries. While Act 145 focuses on benefits and administration, the underlying driver of cost remains the same: injury frequency and severity.
Managing the impact of these legislative changes will require continued investment in:
- Safe patient handling programs
- Workplace violence prevention
- Staff training and ergonomics
What Should Health Care Employers Do Now?
Act 145 does not require immediate operational changes, but it does influence the broader worker's compensation landscape. Health care employers should consider:
- Reviewing claim trends, particularly musculoskeletal and repetitive injuries
- Evaluating return-to-work strategies within clinical constraints
- Confirming proper classification of all employees and contracted staff
- Discussing potential cost impacts ahead of renewal
We’re Here to Help
Understanding how legislative changes translate into real-world impact is not always straightforward, especially in a complex environment like health care. As your partner, we at WisMed Assure are here to help you navigate these updates and align your worker's compensation program with your organization’s specific risks and operations.
If you have questions about Act 145 or how it may affect your policy, we encourage you to reach out to your agent. We welcome the opportunity to discuss your program and identify strategies that support both your team and your bottom line. Contact [email protected] or 608.442.3810 to learn more.
This article is for informational purposes only and should not be considered as insurance advice related to your specific policy or situation. Please consult with a qualified insurance advisor or professional before making any policy decisions. Full disclaimer and contact information.
Back to top