The Michigan Chamber has played a leadership role in legislative efforts to reform Michigan’s workers’ compensation system. These reforms continue to be hugely successful in stabilizing Michigan’s workers’ compensation system and have resulted in a 39 percent decrease in premiums since the reforms were enacted in 2011, saving Michigan employers an estimated $390 million.
The Michigan Department of Licensing and Regulatory Affairs (LARA) recently announced that the pure premium advisory rate for workers’ compensation insurance will drop by an average of 9.3 percent in 2017. Premiums dropped by an average of 6.9 percent in 2016 and have declined by 39 percent since 2011.
LARA reports that the most recent comparison data shows that Michigan’s cumulative pure premium decrease from 2011-16 is the best in the Midwest and top five in the nation. While Michigan’s rate continues to decline, the national average increased 7.1 percent. This is good news for our state’s overall competitiveness.
The sharp reduction in Michigan’s workers’ comp rates can be directly attributed to major legislation pushed by the Michigan Chamber. An overarching goal of the legislative effort was to continue to protect workers injured on the job but to return them back to employment as soon as possible. See more.