Michigan comp medical payments lower than most other states: Study

Workers compensation medical payments in Michigan are among the lowest in the country, according to a study by the Workers Compensation Research Institute.

The study released Thursday examined medical payments per workers compensation claim with more than seven days of lost time in Michigan compared with other states.

In Michigan, medical payments per claim were limited to 2.2% per year, due in part to lower prices paid for professional services as well as lower payments per service for hospital outpatient services, according to the study by Cambridge, Massachusetts-based WCRI.

Prices paid for services by nonhospital providers were 14% lower in Michigan than the median study state due to lower fee schedule rates. In Michigan, the maximum workers comp fee schedule rate was 34% above the Medicare rate, which is lower than most other states, according to the study.

“Michigan had among the lowest medical payments per claim among the study states. Lower-than-typical medical payments per claim in Michigan were a result of lower prices paid for professional services as well as lower payments per service for hospital outpatient services,” said Boston-based Ramona Tanabe, executive vice president and counsel at WCRI.