Employers in Michigan recently got some good news.
A recent report shows that the state’s workers compensation system continues to give Michigan a competitive advantage over competing states in attracting businesses.
A Workers Compensation Research Institute (WCRI) study compared workers comp claims and found costs per claim in Michigan were the lowest among the 17 states studied, with the average claim size falling over a three-year period.
“Michigan’s workers compensation system continues to demonstrate that it is a real asset in terms of attracting and retaining businesses to our state,” said Michigan Dept. of Licensing and Regulatory Affairs Director Mike Zimmer.
“Our work comp costs are trending downward and that’s positive news for job providers, employees and job seekers.”
WCRI’s CompScope™ Benchmarks for Michigan, 15th Edition reported:
- After 36 months, the average 2011 Michigan claim was four percent lower than similar claims from 2008. That was the largest decrease of all states WCRI studied. The typical state’s claim costs rose eight percent over that period.
- Between 2008 and 2011 (claims evaluated as of 2014), indemnity benefits per claim decreased 12 percent, benefit delivery expenses per claim decreased five percent, and the average medical payment per claim rose nine percent.
- All three cost components were below the median of the 17 states WCRI studied. Indemnity benefits per claim were 22 percent lower than the typical study state. Medical benefits per claim were 34 percent lower, and benefit delivery expenses per claim were 21 percent lower.
Michigan Rate Continues Falling
The state’s workers comp rate also continues to decrease.
This year, Michigan’s pure premium advisory rate, a key factor in determining a job provider’s overall expenses for workers comp, dropped by an average of 6.5 percent and has decreased 27.7 percent since 2011, saving Michigan employers an estimated $277 million.
The most recent comparison data also shows that Michigan’s cumulative pure premium decrease of 22.7 percent from 2011-14 is best in the Midwest and second best in the nation.
While Michigan’s rate plummeted, the national average went up 10.8 percent.
Author Kori Shafer-Stack, Editor, Amaxx Risk Solutions, Inc. is an expert in post-injury response procedures and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. www.reduceyourworkerscomp.com. Contact: [email protected].
©2014 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law.
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