Statistics show employer costs reach 25 year lows

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Dispelling the myth of high employer costs and changing attitudes about workers’ compensation through statistics.

ProPublica, an independent and non-profit newsroom, has released a fascinating report about workers’ compensation costs. Its investigation found employers nationwide are paying some of the lowest rates in the last 25 years. This was based upon the average premium cost to employers for every $100.00 of wages.

For example, employers nationwide paid an average of $1.85 per $100.00 of wages in 2014. This represents a 59 percent drop since 1988. Michigan employers paid $2.36 per $100.00 of wages in 2014. This is an 82 percent drop since 1988.

More statistics

Michigan is a large state with a significant manufacturing base. We have now seen a 27.7 percent drop in the pure premium rate over the last four years. This has saved employers an estimated 277 million dollars.

A recent study from the National Academy of Social Insurance (NASI), a nonprofit and nonpartisan organization, showed -24.9 percent growth in total benefits paid during a five year period between 2009 and 2013. This occurred despite 4.6 percent growth in covered workers during the same period of time.

WCRI, a not-for-profit research organization, conducted a 17-state survey covering nearly 60 percent of the nation’s workers’ compensation market. It found indemnity benefits in Michigan per claim were 22 percent lower than the typical study state. Medical benefits per claim were also 34 percent lower, and benefit delivery expenses per claim were 21 percent lower.

Where is the real crisis?

Special interest groups would have you believe that workers’ compensation is too expensive and “job creators” need more protection to be competitive. Don’t believe the hype!

Legislative amendments in 2011 permit insurance companies to reduce benefits using a hypothetical “wage earning capacity.” This means weekly checks can be stopped when they decide work is available within a person’s restrictions. It does not matter whether real wages are actually paid.

It’s time for our elected representatives to put Michiganders ahead of special interests groups and fix the system. We need a change of attitude when it comes to protecting this important safety net.

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:

Who pays for a 28% reduction in premiums?

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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.