From our partners at M3: Wisconsin Workers’ Compensation Rate Update

Effective October 1, 2025

Effective October 1, 2025, new Wisconsin Workers’ Compensation rates will take effect. Each year, the State of Wisconsin conducts a review of workers’ compensation rates, which are then applied to all new and renewal policies.

Key Highlights:

While Wisconsin continues to be amongst the highest in the nation for medical expenses, overall expected losses are down, with a decrease in claim frequency, combined with wage inflation. Wisconsin experienced an overall decrease of 3.20%. This year marks the 10th consecutive year of overall workers compensation rate decreases in the State of Wisconsin.

Legislative Update:

Governor Tony Evers has signed legislation introducing a medical fee schedule for Wisconsin's workers' compensation system. This represents a significant policy shift aimed at controlling the State's medical costs—a critical development as Wisconsin continues to rank among states with the highest workers' compensation medical expenses. While implementation details are still pending and subject to eligibility limitations, this legislative change signals a step toward cost containment in the state's workers' compensation landscape. For more details, visit the M3 Insight Center.

Updated Class Code Rates:

As noted in last year’s memo, these rate reductions may positively impact workers’ compensation premiums. However, it’s important to consider the potential effect on your organization’s experience modification factor (mod). Since individual class code rates are used in the denominator of the experience mod formula, a decrease in rates—especially for larger organizations—can sometimes result in a higher mod. That said, the overall premium impact is typically neutral or favorable.

Strategic Considerations for Employers:

• Telehealth remains a powerful resource for managing work-related injuries. Benefits include:
• Reduced workplace disruption and time away from work
• Immediate support for first aid and triage
• Streamlined referrals to appropriate medical providers
• With ongoing labor market challenges—including talent retention, recruitment, and increased competition for skilled workers—employers should continue to prioritize employee well-being. The rise in mental health diagnoses further underscores the importance of integrating workers’ compensation programs with broader workplace benefits.
• Leverage Employee Assistance Programs (EAPs) as part of your workers’ comp strategy to support employees post-incident.
• Adapting your benefits approach based on your organization’s social determinants of health (SDOH) to enhance employee satisfaction and outcomes. As the benefits landscape has become more complex, please visit our M3 Employee Benefit Trend Report for innovative point solutions.