Michigan's practice of non-intervention in workers' compensation claims could be at the expense of employees and insurance carriers, according to a new Michigan State University study.
Fifty states and the District of Columbia were surveyed on three areas of their workers' compensation activity: claims decision-making and approval, claims monitoring and insurance carrier auditing. Some 90 percent responded to the mail questionnaire.
The research was conducted by Karen Roberts, an MSU professor of labor and industrial relations, and was funded by a grant from MSU's Institute for Public Policy and Social Research.
"The policy debate over workers' compensation and state agency monitoring may be framed inaccurately as imposing costs on employers," said Roberts. "The data show that employers' costs are unaffected and both employees and carriers benefit from it."
Among the findings: * Employer education and risk management were significant in reducing work-related injuries and illnesses.* States requiring more approval at various stages in the claims process were more likely to benefit employees.* Compared to other states, Michigan is above the national average in the number of injuries and illnesses per 100 full-time employees but about average in the number of cases involving lost time. * Michigan is slightly below average in real expected benefits, benefits paid per covered employee and benefits-covered wages ratio, but about average in benefits paid per covered employee. * Michigan is slightly above average in net weekly costs to employers.
"While Michigan is one of the top 11 most stringent states on reporting, it appears that much more can be done by the state in the area of monitoring and intervention to benefit employers and insurance carriers alike," Roberts said.
The study's complete report and executive summary are available at http://www.ippsr.msu.edu
Funding for the grant is made possible by the Michigan Applied Public Policy Research Program, which is provided by the State of Michigan to develop expertise for Michigan's policymaking community. More information is online at http://www.ippsr.msu.edu/ApppliedResearch/AboutAAPR.htm