Even if you think all is well with your workers' compensation, it is a good idea to get a confidential and free review and analysis performed by the Michigan Compensation Cost Control Service with the Michigan Economic Development Corporation (MEDC). For instance:

• Do you know what your modification factor is (and why)?
• Do you receive a copy of your Michigan Experience Rating Form prior to renewal?
• Are you getting a schedule credit rating?
• Are you getting a premium credit?
• What have your trends been in workers' compensation and how long has it been since you "shopped" for your insurance?
• Are your claims handled in a timely fashion?

If you do not have good answers for these questions, return the letter of authorization   and the Michigan Economic Development Corporation will try to help you.

If you have also heard that the "State of Michigan makes the rules about your rates, etc.," it will be beneficial for you to learn what the state's role actually is and is NOT!

FAQ's

  What is the Compensation Cost Control Service?

The Compensation Cost Control Service assists employers in designing and implementing strategies for minimizing their costs of workers' compensation coverage. This program also benefits employees by stressing the importance of injury prevention and early return-to-work programs, thereby minimizing the suffering and lost income which result from work-related disabilities.

  Who is eligible?

While the service was specifically designed to meet the needs of small to medium-sized employers, all Michigan employers are eligible.

  What specific services are provided?

Depending on the individual needs of a given employer, the following services are available:

• Identification of potentially lower-cost alternatives such as: group self-insurance funds, individual self-insurance, "deductible" programs, and "retrospectively rated" policies.
• Employer-specific information on how a firm's claim and loss history are affecting its "experience modification factor" and its net premium cost. This may also include an in-depth analysis of injury and claim loss history, and assistance in updating or correcting data used to calculate a firm's experience rating factor.

  These claim and loss history analyses enable employers to benchmark their workers' compensation costs relative to other employers in the same industry; better track their firm's costs over time; and establish realistic goals for injury prevention and cost control.

• Assistance in developing a customized cost containment strategy which may include utilizing or adapting successful techniques employed by other firms.
• Referral to the Consumer and Industry Services' Consultation, Education and Training (CET)and On-Site Consultation Program(e-mail:bsrinfo@cis.state.mi.us) can help Michigan employers substantially reduce the incidence and severity of workplace injuries and illnesses.
• Identification of appropriate private sector services.
• Up-to-date information on how recent changes in state law and recent court decisions can aid employers in better controlling their workers' compensation costs. Employers are also provided with data on both general and industry-specific trends in workers' compensation costs in Michigan, and where appropriate, the relevant cost data for competitor states.

  How does one request these services?

To request these services, fill out and the return the letter of authorization  to the Michigan Economic Development Corporation Customer Advocacy office. This form allows the MEDC to access your firm's current insurance policy information and recent claim/loss history data. This information enables MEDC staff to prepare firm-specific analyses of your costs. All such information is treated with the strictest confidence by MEDC staff. For further information, contact the MEDC office by phoning (517) 373-9808, or by using Live Chator E-Mail a Question.