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Reduced Workers’ Compensation Costs Improves State Economy

The Michigan Manufacturers Association (MMA) praised continued gains in manufacturing competitiveness as the Michigan Workers’ Compensation Agency (WCA) announced that the state’s workers’ compensation pure premium rate will decrease for the eighth straight year, dropping 8.3 percent in 2019.

Michigan remains the only Midwest state to see such a dramatic cost-savings for workers’ compensation and the overall cumulative decrease of 49 percent from 2011 to 2019 will save Michigan employers an estimated $492 million in premiums.

“The cost savings we see today is directly related to two things: the sweeping reforms to the workers’ compensation system supported by MMA and signed by Governor Snyder in 2011 and strong, safety-focused cultures in today’s advanced manufacturing sector,” said Chuck Hadden, MMA president and CEO. “This is more evidence that Michigan’s reinvention is successful in helping Michigan companies thrive in a globally competitive environment.”

The pure premium rate is a key factor in determining a job provider’s overall expenses for workers’ compensation. The MMA is proud of its work with Governor Rick Snyder and the bold steps taken to improve the competitiveness of Michigan’s business climate through workers’ compensation, an issue at the forefront of MMA’s policy agenda since its founding in 1902.

The most recent comparison data from the Michigan Department of Licensing and Regulatory Affairs (LARA) also shows that Michigan’s cumulative pure premium decrease of 45 percent from 2011-18 is again best in the Midwest and third in the nation.

“I continue to hear from my counterparts around the nation about how envious they are of Michigan’s efforts to reduce costs for job providers,” said Hadden. “These are cost-savings manufacturers can reinvest in their workforce, in new equipment and in facilities right here in Michigan.”


This release was originally promoted on 10/25/18.

Contact Brett Gerrish

Brett GerrishCommunications Coordinator
Call 517-487-8533
E-mail gerrish@mimfg.org