HELENA –(Phil Drake)- A legislative panel on Friday moved a workers' compensation reform bill out of committee and on to the 2011 legislative session even though several doctors and other health-care providers said major surgery was needed to portions of the proposal.

The state Legislature's Economic Affairs Interim Committee approved the bill as proposed by the Labor -Management Advisory Council (LMAC). However, Rep. Chuck Hunter, D-Helena, was told to meet with the LMAC and with the parties who complained about the bill Friday to see if a compromise could be reached.

LMAC, a state-appointed panel consisting of representatives of labor and management, has been working nearly three years on reforming the system. Suggestions include new fee schedules for doctors, a statutory closure of claims after three years and the implementation of treatment guidelines.

LMAC members believe they have come up with a plan that will cut Montana's workers' compensation costs from $407 million to $254 million. At a meeting in August, reports ranged as to how much the changes could save the system. One report said $5.3 million could be saved - or it could bring $20 million in additional costs - and another report put the figure at $150 million.

In August, officials learned Montana may now be No.1 on the list for having the highest workers' compensation costs in the nation. Previously, the state was ranked No. 2.