Michigan Workers’ Compensation Insurance – Forbes Advisor
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Workers’ compensation is a means of providing salary replacement, medical benefits and rehabilitation services to employees who become ill or injured as a direct result of their employment. Employers pay workers’ compensation benefits for their workers.
Workers ‘compensation insurance coverage varies from state to state, with each state establishing its own workers’ compensation laws and regulations. Here is an overview of workers compensation in Michigan.
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Who Should Get Workers’ Compensation Insurance in Michigan
In Michigan, the following types of employers are required to purchase 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 more
- All private employers who regularly employ three or more employees at a time, including part-time employees
- Agricultural employers if they employ three or more employees. These employees work 35 or more hours per week for 13 consecutive weeks or more
- Domestic employers who employ domestic workers 35 or more hours per week for 13 weeks or more
What Michigan Workers’ Medicare Covers
In Michigan, injured workers are entitled to:
- Certain benefits to compensate for the loss of wages suffered by the injured worker
- Cost of medical treatment
- Vocational rehabilitation limited to 104 weeks
To receive compensation for lost wages, an employee must have lost wages of a week or more. Employees receive 80% of their average weekly salary, after tax. These wage loss insurance benefits can last a lifetime, depending on the severity of the employee’s injury and the wages lost.
If a worker dies from an illness or injury at work, death benefits may be available for the person’s family. The amount of the death benefit is 80% of the value of the salary, after tax, and can be paid to the family for up to 500 weeks. If disability benefits were paid prior to death, this will shorten the time for payment of death benefits.
Michigan Workers’ Compensation Insurance medical benefits include:
- Medical care
- Surgical care
- Hospital care
- Dental services
- Hearing aids
- Chiropractic care
- Medical care
Vocational rehabilitation can include changing the worker’s current job and starting a new job. Or it may mean working with the employer to help the worker return to the job with the same or similar job.
Where to Get Michigan Workers’ Compensation Insurance
Michigan employers must arrange for the payment of worker benefits. They have these options:
- Take out work accident insurance from an insurance company
- Become self-insured with state approval. When an employer is self-insured, they have created their own fund from which to pay workers’ compensation claims. Self-insured businesses can also pool their resources with other businesses in the same industry to pay claims
Michigan’s Largest Workers’ Insurance Companies
Cost of Michigan Workers’ Compensation Insurance
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 work they perform.
Other factors affecting workers’ compensation insurance rates are payroll, claims history and the condition of the business.
Average worker pay rates in Michigan are 16 cents per $ 100 of payroll for the least risky employees and $ 11.04 per $ 100 of payroll for the most at-risk employers. according to Cerity.
Since 1983 Michigan has competitively priced workers’ compensation insurance. Since not all insurance companies charge the same rate for the same workers’ compensation coverage, it is important to find the best price. Cost is an important consideration, as are the services provided by an insurance company, such as claims handling.
Employer Steps After Learning About Injury or Illness
Once an employer is notified of an employee’s workplace accident or illness, they must:
- File an “Employer Baseline Injury Report” form with the Michigan Workers’ Compensation Agency for all lost wages
- Notify the insurance company for medical workers compensation cases
- Inform the health care provider of the name and address of the insurance company where the health care bills should be sent
- Forward medical bills and documents relating to medical services to the insurance company
Choosing a health care provider for workers
You must inform your employer as soon as you realize that you are suffering from an occupational injury or illness. Once you do, the employer will send you to a doctor or medical hospital of their choice for the first 28 days of treatment.
Once these 28 days have elapsed, you are free to choose your own doctor, but you will have to inform your employer of the new doctor you will see.