More good news for insurance companies

WCRI releases 17-state survey evaluating workers’ compensation programs.

2207307656_b71dc9d2ef_mWCRI, a not-for-profit research organization, has released its CompScope Benchmarks, 15th Edition. This study is designed to help policymakers and other stakeholders benchmark performance of a state’s workers’ compensation program.

The 17-state survey looked at data from 2008-2014 and covers nearly 60% of the nation’s workers’ compensation benefit payments. We have included some of the highlights from Claims Journal and you can purchase the full WCRI study.

Michigan’s costs were among the lowest in the survey. The average 2011 claim was 4% lower than similar claims from 2008. That was the largest decrease of all states WCRI studied. The typical state’s claim costs rose 8% over that period.

Between 2008 and 2011, indemnity benefits per claim decreased 12%, benefit delivery expenses per claim decreased 5%, and the average medical payment per claim rose 9%.

All three cost components were below the median of the 17 states WCRI studied. Indemnity benefits per claim were 22% lower than the typical study state. Medical benefits per claim were 34% lower, and benefit delivery expenses per claim were 21% lower.

An interesting point to consider is that legislative reforms did not apply to claims before December 2011. Several controversial Supreme Court decisions from the 2000s had a real effect on curbing benefits.

We have seen a dramatic reduction in number of cases and benefits paid in the last several years. This is wonderful news for insurance companies and big corporations in Michigan. Not so great for people hurt on-the-job.

We previously reported that the pure premium rate has dropped 28% in the last three years saving employers 277 million dollars. These cost savings are not happening in a vacuum and somebody is paying the price.

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.

Related information:

Own a small business? Demand a refund from workers’ comp!

Photo courtesy of Creative Commons, by liz west.

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