Michigan’s Department of Licensing and Regulatory Affairs (LARA) recently announced that the pure premium rate for workers’ compensation insurance in the state would drop by an average of 9.3 percent in 2017. The rate in Michigan has decreased 39 percent since 2011. The decrease is a reflection of a sweeping legislation reforms that Michigan went under in 2011. The improvements defined disability and post-injury earning capacity. The changes reduced the costs for Michigan employers yet ensured the promise of compensation for injured Michigan employees. Last years, Michigan’s workers’ compensation ensured the proper payment of more than $1billion in benefits to Michigan workers injured on the job. A study further found that 79% of injured Michigan workers were satisfied with their medical care.

Following suit, Indiana and Oregon approved a reduction for workers’ compensation rates to be effective in 2017. Indiana approved 9.3% reduction in premium. As such, the state remains to be some of the lowest workers’ compensation rates in the nation. Oregon, on the other hand, will see a reduction by an average of 6.6% in 2017, and marks the fourth-straight year of average decrease in Oregon. This decrease is a part of a mixture of rate changes designed to invest in workplace safety and health programs while preserving historically lows costs. Some changes include a increase in the premium assessment, which funds state costs of running workers’ compensation and workplace safety and health programs, and a decrease in the payroll assessment. Oregon workers’ compensation board commented that the rate changes preserve the integrity of our workers’ compensation system.

Amidst of the wonderful news, Georgia’s friend, Florida, recently approved an overall combined statewide average rate increase of 14.5% proposed by the National Council on Compensation Insurance (NCCI). This rate increase applies to both new and renewal workers’ compensation insurance policies effective in 2017. NCCI received this approval after submitting an amended rate filing, which went from 19.6% to 14.5% rate increase because the initial proposal of  19.6% rate increase was rejected by the Florida Office of Insurance Regulation. The filings of rate increase were insurance industry’s direct response to two recent Florida Supreme Court rulings, Bradley Westphal v. City of St. Petersburg et al, and Castellanos v. Next Door Co., which favored the injured workers (as I have elaborated these decisions on an earlier blog). The American Insurance Association commented, “The rate hike emphasizes the urgent need for the Legislature to reverse the harmful effects of the rulings. In particular, the decision overturned reasonable parameters on the claimant benefits and attorney fees that fairly regulate costs in Florida, in favor of what has proved to be an uncapped approach that unjustly enriches the attorneys and plunge the workers’ compensation system.” AIA may find it tremendously surprising when the fair system it referred to is consistently named in the nation’s worst workers’ compensation system. The rate hike is nowhere close to a positive reform to the system in response to the rulings, but a mere pressure on the state legislature to follow what the insurance industry wants.

Georgia has not published its Workers’ Compensation Proposed Rate for 2017. Yet, it would not be too difficult to foresee that the rate in GA may not see any reduction when the national average increased 7.1 percent, and our friend recently approved a rate hike.

The Poirier Law Firm routinely, successfully represents injured workers.  You must have a zealous advocate fighting and protecting your rights.  If you or a family member has been hurt at work, call Poirier Law today for help and for a free consultation.