How big corporations use misconceptions and half-truths to fuel the debate about workers compensation.
We previously blogged about the opt-out movement picking up steam. How the safety net for millions of Americans is in jeopardy.
Major corporations are spending big money to wipe out workers compensation. They would have you believe the system is in crisis using half-truths and tired arguments about protecting “job creators.”
Don’t believe the hype! Here are some common misconceptions in Michigan.
1. Tax dollars fund workers compensation
Workers compensation is a type of insurance that employers are required to purchase for their employees. It protects both parties if a work accident occurs. No taxpayer dollars are used and premiums are relatively inexpensive. It is not welfare!
2. People get rich from workers compensation
Claimants only receive approximately 60% of their gross pay while totally disabled. This amount is subject to a weekly maximum rate of $820. Individuals who are considered partially disabled get less than 60% depending on their ability to earn other wages. Settlements are based upon how many years a person is expected to be disabled and future medical costs. Pain and suffering is not available.
3. Fraud is a serious problem
Accident Fund says fraud occurs in less than 4% of claims. Claimants are required to submit to medical examinations by doctors of the insurance companies choosing. Investigators are routinely hired to perform activity checks. Fake claims are quickly discovered.
4. People on workers compensation are just lazy
Refusing a job offer from your employer results in an automatic suspension of benefits. A good-faith job search is also required as a condition of receiving wage loss benefits. Most people simply want to recover and get back to their regular employment.
5. Insurance premiums are out-of-control
Michigan has seen a 28% reduction in the pure premium rate over the last three years. WCRI, a not-for-profit organization, found that medical payments in Michigan were typically lower than all 16 states in its 2013 study.
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 (855) 221-2667 for a free consultation today.
Photo courtesy of Creative Commons, by stallio.