Medical costs lowest in 16 state survey

Workers compensation lawyer discusses WCRI study showing Michigan has the lowest medical costs per claim.

Great news for insurance companies doing business in Michigan. It was reported last week by claimsjournal.com that medical costs for workers compensation are the lowest in a 16 state WCRI survey.

The study represents nearly 60% of the nation’s workers compensation payments. It includes states that are in direct competition for new jobs such as Indiana, Illinois, and Wisconsin.

Further medical cost reductions are expected as a result of 2011 amendments to the Act. Employer control of medical was extended from 10 days to 28 days. It is estimated that this legislative change will decrease medical payments in the range of another 2 to 4 percent.

Race to the bottom

Other legislative changes include the introduction of partial disability based upon “wage earning capacity.” Lost wages can now be reduced simply because an insurance company thinks a person can work somewhere else. It does not matter whether the person is actually earning real wages or not.

Special interest groups continue to complain that workers compensation costs are too high in Michigan. Even though the pure premium rate has decreased almost 15% in the last two years. Insurance companies and self-insured corporations are using the same tired arguments. How we need to protect “job creators” and prevent fraud.

Workers compensation has been cut to the point that the system is no longer providing adequate benefits. The burden of proof has become so extreme that many people have no remedy at all.

Someone always pays

Injured workers who need medical treatment don’t just disappear. The burden is shifted to the taxpayer through programs like Medicaid and Medicare. Food stamps and other state assistance is often required.

Workers compensation is supposed to be a compromise of interests. It has now turned into a state-run give away for special interest groups that don’t want to pay anything when someone is hurt at work.

To speak with one of our workers compensation lawyers, call (855) 221-2667 for a free consultation. We are committed to helping people receive fair compensation for their work-related disabilities.

Alex Berman is the founder of Michigan Workers Comp Lawyers. He’s been representing injured and disabled workers exclusively for more than 35 years.  Alex has helped countless people obtain workers compensation benefits and never charges a fee to review a case.

Related information:

Michigan Businesses to Benefit from Decrease in Workers’ Compensation Rates

04/01/2013
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