MiScorecard Performance Summary (Dec. 2015)

Workers Compensation Agency (WCA) gets quarterly MiScorecard and it shows misplaced priorities.

dashboardGovernor Rick Snyder created Mi Dashboard to provide a quick assessment of various state agencies. It is supposed to show what is working and areas for improvement.

We think Mi Dashboard misses the mark entirely. Here are the four metrics used and why the scores do not match reality. Is it time to throw out the MiScorecard?

Metric 1. Cost Per Claims

This metric shows 11.5% growth over a 4 year period. The WCA gets a passing grade (green) because it is less than the target of 25%.

What it does not show is adequacy of benefits. Many of our clients are getting far less because of reforms signed by Governor Snyder in 2011. Insurance companies are now permitted to use wage earning capacity to say a person is not totally disabled. This has resulted in some people getting less than $20 per week from workers’ compensation despite having no other income.

2. Cost of Premium Ranking

The WCA gets a fair score (yellow) because it is currently ranked 34 out of 50 states for cost of premium (1 (highest) to 50 (lowest)). Getting Michigan into the top 10 cheapest states for workers’ compensation is the goal.

What it does not show is the pure premium rate has actually dropped 32.7% since 2011 resulting in savings of $327 million for businesses. We are now in a race to the bottom and workers are paying the price. Michigan already offers a better value proposition compared to other Midwestern states who are competing for similar business.

3. Process Improvement

The WCA gets a failing grade (red) because it has not hit 50% for electronic data compliance filings. It currently sits at 26.5% of target.

What it does not show is how much money has been budgeted for modernization. Governor Snyder should allocate additional funds to the WCA and get serious about technology upgrades. Talk is cheap.

4. Duration of Temporary Disability

The WCA receives a passing score (green) for reducing duration of disability from 17 to 16 weeks. The target is 15 weeks of temporary disability.

What it does not show is whether people are actually getting back to gainful employment. Just because an insurance company stops paying does not mean a person is actually recovered. Many of our clients lose their benefits prematurely and have few options.

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:

WCA: MiScorecard Performance Summary

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