Legal Expense - Humanizing the WC Claims Process Provides Results Across All WC Cost Categories

february 27, 2026– Michael Marsh

From a study completed using data through 121/31/2025, re: MT Workers’ Compensation Claims and Legal Expenses

Legal Defense Expense Summary

Per AI source GROK, “From injury years 2013–2022 (aggregated in the 2023 report): Approximately $5.8 million total across ~2,125 claims with reported legal expenses (averaging roughly $2,700–$3,000 per reported claim when divided across all with any legal expense, though this includes non-litigated matters and is not per-litigated only).”

Midland Claims / Wrenwell Claims results in Montana

Self-Insured Programs – 3

Total Reported Claims – 33,622

Number of Claims Involving Litigation (including non-rep workers) – 636

Litigation Ratio – 1.89%

Average Defense Legal Costs across 636 claims - $1,040

Public Data Available for Litigation Ratio – 4.5%

If MCSi/Wrenwell claims at State Litigation Ratio – 1,512 claims

If MCSi/Wrenwell at State Ratio 4.5%, Cost Differential - $910,471

*LER would have increased nearly $1M using existing average defense legal per claim

Cost using sate average legal expense - $4,309,000

Cost Savings actual v State Ratio and Average Defense Legal Cost of $2,850 – $3,647,000

Takeaway: Humanizing workers' compensation claims means developing a relationship with the worker and those close to them. That takes the investment of time, and a payer / adjuster relationship that incentivizes such an investment. One line item that is not looked at by some when looking for a claims TPA is defense legal expense and the average cost per litigated claim. When LER is included in the evaluation, the savings from this type of investment is a 10 x return.