Workers' Compensation Rates Decreasing, Thanks to Chamber-Supported Legislation

August 24, 2012

August 24, 2012 - There was good news this week for Michigan job providers as the Workers' Compensation Data Collection Agency Board approved a 7.2 percent drop in pure premium advisory rates for workers' compensation insurance. This marks the second year in a row with a drop of over seven percent. 

Earlier this year, the State Legislature passed Chamber-supported legislation to comprehensively reform Michigan's workers' compensation laws. One-third of this year's pure premium reduction is directly attributable to those statutory changes, according to Kevin Elsenheimer, Michigan's Workers' Compensation Agency Director. The remainder of the drop is attributed to a reduced number of work-related injury claims and a fee schedule which controls medical costs for work-related injuries.

The new rates will be effective January 1, 2013. The pure premium rate is the annual yardstick against which private insurance carriers can compare their rate structure for workers’ compensation coverage for the coming year. Pure premium rates are developed by examining historical loss data reported by insurance carriers for individual job classes and then analyzing how the data will be affected on a year-to-year basis by any law changes or court decisions.

For further information, please contact Wendy Block, Director of Health Policy and Human Resources at 517/371-7678 or