Saturday, December 20, 2014
Gain or Loss: Business Insurance Broker on Workers Comp Rate Drop
In a bid to attract more investors to Michigan, the state began pulling its workers compensation rates down in 2011. According to the Workers’ Compensation Agency (WCA), as of 2014, the rates have dropped by 22.7 percent over a three-year period, and are still expected to drop further next year, bringing them to 27.7 percent over a four-year period. WCA data also shows that the drop in workers comp rates took off in 2012, when it dropped by 7.4 percent. By this time, House Bill 5002, which WCA director Kevin Elsenheimer credited with the enormous drop, had already taken effect. Under the law, a worker can receive 80 percent of his net weekly salary if his injury caused total disability and wage loss.