Workers’ compensation a good value proposition?

Workers Compensation Research Institute (WCRI) publishes 18-state survey showing Michigan with lowest average total cost per claim.

WCRI has published its 16th edition of CompScope Benchmarks. These reports cover 60% of total workers’ compensation benefits paid across the United States.

Michigan had the lowest average total cost per claim with more than 7 days of lost time. Average medical payments per claim were also among the lowest in the study.

This news comes on the heels of another huge drop in the pure premium rate for 2016. Michigan businesses have now seen a decline of 32.7% since 2011 with estimated savings of $327 million.

It would appear that Michigan does indeed offer a good value proposition when it comes to workers’ compensation.

But this does not necessarily apply for everyone! Here is our 2 cents on cost shifting and misplaced priorities.

We previously blogged about an article from the Journal of Occupational and Environmental Medicine finding nearly 80% of costs were shifted to other payers. This includes health insurance companies, Medicaid, and Medicare. Cost shifting raising premiums and taxes for everyone.

Michigan has been in a race to the bottom for several years now. Special interest groups used enormous political pressure to reform workers’ compensation in 2011. Proving disability has become so difficult that many people have no recourse at all.

It is time for lawmakers to use better metrics when evaluating workers’ compensation. Employer costs are just a small piece of the puzzle and should not monopolize policy discussions.

We think more of a focus needs to be on employee results. Are medical and indemnity benefits sufficient? Are people actually getting back to gainful employment?

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:

Work Injury Costs: The Big Lie About Who Pays

Photo courtesy of Creative Commons, by Images_of_Money.

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