Health care costs skyrocketing but workers’ comp premiums keep dropping.
The Detroit Free Press is reporting that health insurance plans sold in Michigan under the Affordable Care Act will increase by an average of 26.9%. Insurance companies say they need higher rates in 2018 because of rising health care costs. President Trump’s decision to end cost-sharing reduction payments and general uncertainty in the marketplace is also having a big impact.
We are fans of the Affordable Care Act. It has allowed many of our clients to qualify for health insurance and continue with their medical treatment. This is critical when workers’ comp benefits have been disputed.
Health care costs have been rising dramatically for many years. This has led to an overall increase in health insurance premiums across the board. We are not surprised to see higher premiums even under the Affordable Care Act.
News about skyrocketing health care costs comes on the heels of a 9.3% drop in the pure premium rate for workers’ comp insurance. It has now declined 45% since 2011 saving Michigan employers $446 million.
Why is the pure premium rate falling when health care costs are skyrocketing? Our legislators need to take a hard look at what is happening with workers’ comp.
Proving a workers’ comp case has become so difficult that individuals are no longer receiving promised medical benefits. This has resulted in cost-shifting to other payers like group health insurance, Medicaid, and Medicare. Holding the responsible employer accountable would help ease the premium burden for other types of insurance.
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.
45% drop in pure premium rate since 2011
Photo courtesy of Creative Commons, by 401(K) 2013.