Michigan Workers Compensation Insurance

Michigan Workers Compensation Insurance

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Workers compensation is a way to provide wage replacement, medical benefits and rehab services to employees who get sick or injured as a direct result of their jobs. Employers pay for workers compensation benefits for their workers.

Workers compensation insurance coverage varies by state, with each state establishing its own workers compensation laws and regulations. Here is a look at workers compensation in Michigan.

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Who Must Carry Workers Compensation Insurance in Michigan

In Michigan, the following types of employers must carry workers compensation insurance:

• All public employers
• All private employers who regularly employ one or more employees. These private employees work 35 hours or more per week for 13 weeks or longer
• All private employers who regularly employ three or more employees at one time, including part-time employees
• Agricultural employers if they employ three or more employees. These employees work 35 hours or more per week for 13 or more consecutive weeks
• Household employers that are employing domestic servants for 35 hours or more per week for 13 weeks or longer
  What Workers Comp Insurance Covers in Michigan

In Michigan, injured workers are entitled to:

• Certain benefits to make up for the loss of wages suffered by the injured worker
• Cost of medical treatment
• Vocational rehabilitation limited to 104 weeks

To receive any workers compensation wage loss benefits, an employee must have a wage loss of one week or more. Employees receive 80% of their average weekly wage, after taxes. These wage loss benefits can last for a lifetime depending on how serious the employee’s injury was and the wages that were lost.

If a worker dies as the result of a work illness or injury, death benefits may be available for the person’s family. The amount of death benefits is 80% of the value of wages, after taxes, and can be paid to the family for up to 500 weeks. If there were disability benefits paid before the death, that will reduce the payment time of death benefits.

Medical benefits for Michigan workers compensation insurance include:

• Medical care
• Surgical care
• Hospital care
• Dental services
• Crutches
• Hearing aids
• Chiropractic care
• Nursing care

Vocational rehabilitation can include changing the worker’s current job station and beginning a new job. Or it may mean working with the employer to aid the worker’s return to employment with the same or similar job.

Where to Get Michigan Workers Compensation Insurance

Michigan employers must arrange for the payment of workers comp benefits. They have these options:

• Buy workers compensation insurance from an insurance company
• Become self-insured through approval by the state. When an employer is self-insured, it has created its own fund from which to pay workers comp insurance claims. Self-insured companies can also pool resources with other businesses in the same industry to pay claims

Largest Workers Comp Insurance Companies in Michigan

Michigan Workers Compensation Insurance Cost

Workers compensation insurance rates are based on several factors including the classification of employees. Each type of employee classification is based on the risk of the job they perform.

Other factors affecting workers compensation insurance rates are the company’s payroll, claims history and state.

The average workers comp rates in Michigan are 16 cents per every $100 in payroll for the lowest risk employees and $11.04 per every $100 in payroll for the highest risk employers, according to Cerity.

Since 1983, Michigan has had competitive pricing of workers compensation insurance. Because insurance companies do not all charge the same rate for the same workers compensation coverage, it’s important to shop around for the best price. Cost is an important consideration, as are the services that an insurance company provides such as claims management.

Employer Steps After Learning About an Injury or Illness

Once an employer is notified of an employee’s workers compensation injury or illness, the employer must:

• File an “Employer’s Basic Report of Injury” form with Michigan’s Workers Compensation Agency for all wage loss cases
• Notify the insurance company for medical workers compensation cases
• Inform the medical provider of the name and address of the insurance company where health care bills should be sent
• Forward any medical bills and documentation for medical services to the insurance company

Choosing a Workers Comp Medical Provider

You should let your employer know as soon as you realize that you have a work-related injury or illness. Once you do, the employer will send you to a doctor or medical hospital of the employer’s choosing for the first 28 days of treatment.

After those 28 days are up, you are free to choose your own doctor, but you will need to alert your employer about the new doctor that you will be seeing.