Costs per Claim of Workers’ Compensation Claims in Michigan Low Prior to Enactment of Reform Legislation in 2011, Says WCRI Study

The total costs for a workers’ compensation claim in Michigan were low compared with other states according to a recent study by the Workers Compensation Research Institute (WCRI), Michigan System Performance Prior to the 2011 Legislative Changes: CompScope™ Benchmarks, 14th Edition. The study covers the period prior to the passage of major workers’ compensation legislation in 2011.

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The study helps policymakers and other stakeholders establish a baseline for system performance in Michigan prior to the implementation of provisions in Public Act 266 in 2011.

Cambridge, MA (PRWEB) December 09, 2013

The total costs for a workers’ compensation claim in Michigan were low compared with other states according to a recent study by the Workers Compensation Research Institute (WCRI), Michigan System Performance Prior to the 2011 Legislative Changes: CompScope™ Benchmarks, 14th Edition. The study covers the period prior to the passage of major workers’ compensation legislation in 2011.

“The study helps policymakers and other stakeholders establish a baseline for system performance in Michigan prior to the implementation of provisions in Public Act 266 in 2011,” said Ramona Tanabe, WCRI’s deputy director and counsel.

The 2011 legislative changes included defining disability and postinjury wage-earning capacity in accordance with past decisions of the Michigan Supreme Court, extending the number of circumstances under which benefits could be terminated, extending offsets for retirement benefits, and extending employer control of medical care, among other changes.

The study found that for 2009, total costs per workers’ compensation claim in Michigan were 12 percent lower than the median state in the 16-state study. Lower medical payments per claim were a key contributing factor. The average medical payment per claim was one of the lowest of the study states, 35 percent lower than the 16-state median.

Among other major findings:

  •     Indemnity benefits per claim—wage replacement payments—were typical in Michigan. This was a result of offsetting factors: a shorter duration of temporary disability and less frequent, but more costly, lump-sum settlements.
  •     Litigation expenses per claim were typical and grew more slowly relative to those in other study states.
  •     Growth in total costs per claim in Michigan was among the slowest among the study states.

Click here to purchase this report: http://www.wcrinet.org/studies/public/books/BMcscope_multi14_MI_book.html.

The Cambridge-based WCRI is an independent, non-partisan research center that is recognized as a leader in providing high-quality, objective information about public policy issues involving workers' compensation systems.

ABOUT WCRI:

The Workers Compensation Research Institute (WCRI) is a not-for-profit research organization based in Cambridge, MA. Since 1983, WCRI has been a catalyst for significant improvements in workers' compensation systems around the world with its objective, credible, and high-quality research. WCRI's members include employers; insurers; governmental entities; managed care companies; health care providers; insurance regulators; state labor organizations; and state administrative agencies in the U.S., Canada, Australia, and New Zealand.


Contact

  • Andrew Kenneally
    Workers Compensation Research Institute
    +1 (617) 661-9274 Ext: 257
    Email