MSU Study: Government Can Reduce Work-Related Injuries Without
Increasing Employer Cost
Media Contacts: Amy J. Baumer
Release Date: April 21, 2003
EAST LANSING, Mich. – 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
online.
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.
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