32.7% drop in workers’ compensation premiums

Workers’ compensation pure premium advisory rate continues its sharp decline in 2016.

The Department of Licensing and Regulatory Affairs has announced the pure premium advisory rate for workers’ compensation insurance will drop by an average of 6.9% in 2016. Businesses have now seen a 32.7% drop since 2011 and estimated savings of $327 million.

Comparison data shows Michigan’s cumulative pure premium decrease outpaces all Midwestern states and is second best in the country. The national average increased 11.3%.

“By continuing to reduce unnecessary costs, the system has become an important economic asset. These considerable business savings can free up capital and allow companies to hire more workers, increase salaries and expand operations.” said Gov. Rick Snyder

Race to the bottom

Special interests groups have pushed various agendas under the guise of protecting job creators. Michigan has been especially active with the passage of so called “right to work” legislation and workers’ compensation reform.

These changes have made it much harder to collect benefits. Insurance companies are now permitted to offset benefits using “phantom wages.” This occurs when vocational experts decide work is available within a person’s restrictions, qualifications, and training. It does not matter whether real wages are actually paid.

A recent study from the National Academy of Social Insurance (NASI), a nonprofit and nonpartisan organization, found -24.9 percent growth in total benefits paid during a five year period between 2009 and 2013. This ranks dead last in the survey of 51 states (includes District of Columbia).

Reversing the trend

You are paying for a 32.7% reduction in premiums! We encourage you to speak with friends and family members about your issues with workers’ compensation. Explain how these changes have affected your life personally. Fight the political spin machine with your truth.

We have another election cycle in 2016. Support candidates who are willing to protect workers’ compensation. Make your voice heard!

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:

Statistics show employer costs reach 25 year lows

Photos courtesy of Creative Commons, by Images_of_Money.

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