Michigan employers save millions on workers’ compensation costs as pure premium rate continues to decrease.
The Compensation Advisory Organization of Michigan (CAOM) has announced an average decrease of 8.3% in the pure premium rate for 2019. It has now dropped a combined 65.1% since 2011.
Employers have saved hundreds of millions since workers’ compensation reforms were enacted. But not everyone is celebrating these changes.
Insurance companies can now automatically reduce payment of benefits based upon “wage earning capacity.” Disabled employees who are supposed to receive 80% of their after-tax wages end up getting much less. A recent client saw his benefits slashed from $481.08 to $19 per week. He was told by the insurance company that he could obtain alternate employment despite his lack of qualifications and ability to get the job.
Workers’ compensation is supposed to be a grand bargain of interests. Employees were guaranteed lost wages and medical treatment if they get hurt at work. Employers receive immunity from civil lawsuits.
A 65.1% drop in the pure premium rate does not happen in a vacuum. Employees hurt on-the-job are getting much less benefits. Special interest groups are using the same tired argument about protecting job creators to justify these changes. It is time to fix workers’ compensation and restore the grand bargain.
Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (844) 201-9497 for a free consultation today.
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