Cost of Medical Care for Injured Workers in Michigan Was Lower Than Most States and Rising Slowly

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This WCRI study, CompScope™ Medical Benchmarks for Michigan, 15th Edition, focuses on how various metrics of workers’ compensation medical benefits in Michigan have changed over time compared with 15 other states (Arkansas, California, Florida, Illinois, Indiana, Iowa, Louisiana, Massachusetts, Minnesota, New Jersey, North Carolina, Pennsylvania, Texas, Virginia, and Wisconsin). The study covers the time period of 2007 to 2012, with experience through March 2013.

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Growth in overall medical payments per claim was slower in Michigan than in other study states due to stability in prices paid and utilization of services (volume of delivered services).

Medical payments for workers’ compensation claims in Michigan were lower than most states and rising slowly according to a recent study from the Workers Compensation Research Institute (WCRI).

The report, CompScope™ Medical Benchmarks for Michigan, 15th Edition, found costs in Michigan grew slower than the median for 16 states WCRI studied. From 2007 to 2012, medical payments per claim grew 11.5 percent annually in Michigan, compared with 24.6 percent in the typical study state. In 2012, medical payments per claim fell 1.0 percent in Michigan, while they rose 2.2 percent in the typical study state.

Growth in overall medical payments per claim was slower in Michigan than in other study states due to stability in prices paid and utilization of services (volume of delivered services). Slower growth in prices paid in Michigan likely reflects small changes in the fee schedule rates. When compared to the other study states, overall medical payments per claim in Michigan were lower.

The Cambridge-based WCRI is recognized as a leader in providing high-quality, objective information about public policy issues involving workers' compensation systems.

For more information about this report or to purchase a copy, visit http://www.wcrinet.org/result/csmed15_MI_result.html.

ABOUT WCRI:

The Workers Compensation Research Institute (WCRI) is an independent, not-for-profit research organization based in Cambridge, MA. Organized in late 1983, the Institute does not take positions on the issues it researches; rather, it provides information obtained through studies and data collection efforts, which conform to recognized scientific methods. Objectivity is further ensured through rigorous, unbiased peer review procedures. WCRI's diverse membership includes 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.

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Andrew Kenneally
Workers Compensation Research Institute
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