Michigan workers compensation lawyer discusses the pure premium advisory rate and what this decline means for individuals hurt on-the-job.
LARA Director Steve Arwood has announced the pure premium advisory rate for workers compensation insurance will drop by an average of 8.3% in 2014. Rates have declined three years in a row for a total of over 21%.
This sizeable decrease in workers compensation rates gives Michigan a real competitive edge over neighboring states in attracting and retaining businesses, said Arwood. Workers comp premiums are overhead costs. These savings can free up additional capital for companies to hire new employees and open additional facilities, or give them one more reason to move to Michigan.”
Agency Director Kevin Elsenheimer says 2011 legislative reforms have played a role in containing costs for employers. We will continue to examine every aspect of our regulatory program to ensure our system supports growth for our business customers.
2011 legislative changes
Insurance companies are now allowed to cut-off benefits simply because a person could find a new job somewhere else. It does not matter whether actual wages are being paid.
The burden is on the “partially disabled” individual to file a case and show entitlement to full wage loss benefits. This process can take months or even years!
This also removes the main incentive employers had to bring employees back to work with restrictions.
Race to the bottom
Special interest groups have been using the same tired argument about protecting job creators for years. Don’t believe the hype!
Workers compensation is supposed to be a compromise of employer and employee interests. Benefits have now been cut to the point that the system is no longer reasonable or fair.
We would also love to hear from any employers who have actually seen their insurance premiums drop 20% over the last 3 years.
To speak with one of our workers compensation lawyers in Michigan, call (855) 221-2667 for a free consultation. There is never a fee unless additional benefits are recovered or a settlement is paid.
– Alex Berman is the founder of Michigan Workers Comp Lawyers. Hes 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 evaluate a case.