Today’s issue of WorkCompRecap features the release of a new WCRI study that examined the adequacy of income benefits in replacing the lost earnings of injured workers.
The study used workers’ comp and earnings data from Michigan to show how adequacy can be determined by examining the extent to which workers’ comp income benefits help maintain income after an injury. Key findings included that within 10 years after an injury, the earnings and income benefits an average worker received were projected to be 88% of what a worker would have earned if not injured. WCRI noted that aggregate results hide important differences across different types of workers. For instance, workers with 1-12 months of temporary disability benefits had total income that was projected to replace 91-95% of earnings if if they had not been injured, while workers with permanent partial disability and/or lump-sum payments had total income that was projected, within 10 years postinjury, to replace 69% of earnings if had they not been injured.
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