It’s not all doom and gloom out there.
Regulators in Michigan say workers’ compensation rates for businesses in the state are headed for a drop for the second year in a row.
According to reports at the Insurance Journal, workers’ compensation rates will drop an estimated 7.2 percent – a much needed break for small businesses that are often burdened by the ordinarily escalating rates of workers’ comp premiums. The decrease follows on the heels of last years’ falling rates; a hearty 7 percent cut in premiums, according to the Michigan Department of Licensing & Regulatory Affairs (LARA).
The drop in rates is attributed to the reduced number of work injury claims. Michigan is one of the few states with “well-developed safety programs and a fee schedule which controls medical costs for work-related injuries.” The Insurance Journal also attribute the drop in rates to “recently enacted reforms to Michigan’s workers’ compensation law have had a role.”
“When the Governor signed PA 266 of 2011 reforming the state’s workers’ compensation system, there was a hope that costs would go down. Now we know that almost a third of this year’s pure premium reduction results from those changes,” Elsenheimer said.
Reduced rates will be effective Jan. 1, 2013.
Workers’ Comp Rates in California
It’s no secret that small businesses in California are a bit envious of Michigan’s success in reducing their workers’ comp rates. After all, in the face of our state’s rising workers’ comp rates and loopholes that continue to cause increase on premiums, it’s no surprise that California’s small to mid-size businesses are considering an exit into business-friendly states like Michigan.
But we need California businesses to stay here. It’s essential to the growth of our economic health.
Right now, we need businesses in California to sign our workers’ compensation petition to help reduce the burden of its cost in our state. It won’t happen without your voice.
Sign the petition today and tell Assemblyman Jose Solorio that businesses in California are counting on his leadership to reform workers’ compensation laws in the state.