What happens if the insurance company underpays TTD benefits?

Temporary Total Disability (TTD) calculation in Michigan and why you should never wait to double check insurance company math.

We have blogged frequently about wage loss benefits and how to double check insurance company math. The simple fact is that errors are common and they are never in your favor!

Mistakes are easy to fix but are limited to one year back. This means claimants who have been underpaid must act immediately.

Here are some items you should know about when calculating TTD benefits. You can also call our office and we are happy to give you a free benefit check.

Average Weekly Wage

Disability benefits are calculated using average weekly wage (AWW). It represents the highest 39 paid weeks in the 52 weeks before you got hurt. Overtime, bonuses, premium pay, and even a second job should be included. Gather pay stubs and add together the highest 39 paid weeks.

Weekly Compensation Base Rate

Claimants should receive 80% of their after-tax average weekly wage. Tax filing status, number of dependents, and discontinued fringe benefits must also be known. We tell people this will be approximately 60% of gross pay. Tables published by the State of Michigan provide the base rate.

Specific Loss

Michigan law also provides a schedule for specific loss benefits. This is the minimum number of weeks that a person will receive disability benefits regardless of whether he or she can work. It is based upon loss of a finger, hand, toe, foot, leg, and eye. Individuals who receive payment for a specific loss can also make a claim for additional disability benefits.

Post Injury Wage Earning Capacity

Changes to Michigan law in 2011 permit insurance companies to automatically reduce weekly benefits based upon post injury wage earning capacity (PIWEC). These “phantom wages” are from jobs the insurance company says you can perform. It does not matter whether a new job is obtained. This is biggest area of insurance company abuse that we see in our cases.

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 (844) 201-9497 for a free consultation today.

Related information:

Who pays for a 28% reduction in premiums?

Photo courtesy of Creative Commons, by 401(K) 2013.

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