National Academy of Social Insurance (NASI) publishes 2016 study showing less workers’ compensation benefits paid in Michigan.
Legislation signed by Governor Snyder in 2011 changed how wage loss benefits are calculated for disabled employees. Michigan businesses have now saved almost $400 million in total costs over the last five years. The pure premium rate has plummeted 39% since 2011.
These costs savings do not happen in a vacuum. Disabled employees pay the price when their wage loss benefits are cut using “wage earning capacity.” One of our clients saw his weekly checks reduced from nearly $500 per week to just $19.
The National Academy of Social Insurance (NASI) has now released its 2016 study looking at workers’ compensation across the nation. During a five-year period (2010-2014), benefits as a share of payroll have reached historically low levels.
The five states experiencing the largest percent decreases in total workers’ compensation benefits paid over the five years reported in the study were: West Virginia, Michigan, New Hampshire, Oklahoma, and Nevada.
Michigan saw a 18.6% reduction in total workers’ compensation benefits during the period 2010-2014. Michigan also saw a 15% decrease in medical benefits during the same time. Cash benefits declined 21.1%.
Workers’ compensation is supposed to be a safety net for people hurt on-the-job. Benefits are getting slashed to the point that it no longer functions as intended. We are in a race to the bottom and Michigan is leading the charge.
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.
Photos courtesy of Creative Commons, by iamchad.Tags: Michigan workers comp lawyers