45% drop in pure premium rate since 2011

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Get Help From our Michigan Workers’ Comp Lawyers Today
You’re not alone. Our Michigan workers’ comp lawyers have been called the best in the state, and we pride ourselves on providing you with care, trust, and responsiveness.

Michigan employers save estimated $446 million on workers’ compensation costs as pure premium rate continues to fall.

The Department of Licensing and Regulatory Affairs (LARA) has announced the pure premium advisory rate for workers’ compensation insurance will drop by an average of 9.3% for 2018. Employers have now seen a 45% drop since 2011 and estimated savings of $446 million.

Comparison data shows Michigan’s cumulative pure premium decrease outpaces all Midwestern states and is top five in the nation. The national average increased by 4.9%. LARA attributes these savings to reforms signed into law by Governor Rick Snyder in 2011.

Who pays for a 45% premium reduction?

Michigan law now permits insurance companies to use wage earning capacity when calculating the compensation rate. Think of wage earning capacity as the ability to earn in another job. Insurance companies make this determination on their own using a labor market survey. Phantom wages are then used to offset weekly disability checks.

Special interest groups have been using the same tired argument about protecting job creators for years. This has led to workers’ compensation reform and massive benefit cuts. A 45% drop in the pure premium rate does not happen in a vacuum.

One of our clients saw his disability checks drop from $481 to just $19 per week. A vocational expert said he could earn wages despite suffering from permanent nerve damage and being out of the labor market for nearly ten years. He was also battling cancer at the time his benefits were reduced.

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:

Work Comp Premium Rate Continues Decline; Saving Employers $446 Million Since 2011

Photo courtesy of Creative Commons, by Images_of_Money.

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Author Bio Jeffrey Kaufman

Author
Jeffrey E. Kaufman
Michigan Workers Comp Attorney

Jeffrey E. Kaufman has extensive experience in workers compensation cases and has recovered millions of dollars in benefits for his clients. He believes all injured workers deserve to be on equal footing with insurance companies and employers, and fights tenaciously so their rights are secured and protected.


“Jeff also helped me with getting my Blue Cross bills paid. I would absolutely recommend him and the whole firm. Jeff and the firm did everything they were supposed to do for me and my case.”
Ricardo Perfetto

Hundreds of 5-Star Reviews

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Get Help From our Michigan Workers’ Comp Lawyers Today

You’re not alone. Our Michigan workers’ comp lawyers have been called the best in the state, and our clients love how they’re treated with care, respect, and responsiveness. We will give you the time you need, we will explain your legal rights, and we will always treat you with respect.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Injured? It’s Time to Get Some Answers

Don’t let the insurance adjuster push you around. Request your free consultation today.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.