By Donna Motley, Vice President of Claims

Michigan Workers’ Compensation Administrative Rules dictate that once a claim form concerning an employee work related injury is submitted to the Workers’ Compensation carrier, the Workers’ Compensation carrier has 30 days to make a determination “of some kind”. A definite or final determination of benefits does not have to be made when a claim is first filed with the carrier; BUT the claim has to be addressed. If the initial investigation results in the carrier being able to make a determination that the claim is valid, benefits commence. Benefits would include authorization for medical testing and/or treatment, payment of related bills submitted and payment of wage loss benefits if/when applicable.

If the carrier is unable to make a valid determination within 30 days, it usually means additional investigation is necessary, medical records need to be obtained, written statements requested, a medical evaluation scheduled, etc. The 30 day clock is ticking, so the carrier has to file a form with the State of Michigan entitled Notice of Dispute. The Dispute includes the reason why it is being filed – under the above circumstances the reason would be “Further Investigation Required”, “Additional Information Required from Employee” or “Other”.

By Melanie English, Underwriter / LPT Program Manager

The MTM Underwriting and Marketing Departments regularly receive inquiries about Workers’ Compensation coverage for our Member’s out-of-state employees. Often it is because a Member has hired a salesperson, clerical staff or installers who work in other states or an acquired out-of-state facility. Due to an increase in these inquiries, we thought it was a good time to update you on the out-of-state coverage requirements.

First Six Months of 2023

June 30 – a good time to review our results and see if we are on target or if we need to make adjustments to reach the company goals. An important part of that review is a study of claims losses. Insurance claims are the primary driver of financial results. No other expense category comes close to the percentage impact of claims loss payouts.

Our June 30 review looked at the first six months of 2022 and compared it with the current six months of 2023. We will want to review the differences and see if there are any trends that can be identified. In looking at the aggregate loss payments for 2023, we found those were higher than both 2022 and 2021. We pulled 2021 into the review to see if any trend lines could be identified. Interestingly, we found the claims frequency has remained virtually unchanged for 2023 compared to 2022. The frequency difference was 1%.

By Chris Demeter, Senior Loss Control Consultant

MIOSHA requires companies to train on any hazards their workers may encounter. Knowing, understanding, and interpreting MIOSHA rules and regulations can sometimes be confusing. This is why our Loss Control team is here to assist you through the process. Help is only a phone call or an email away and will be answered by one of our Loss Control Consultants. This support is an integral part of MTMIC’s service because we know that safety and health questions are inevitable.

f you are not the person that handles the safety walkthroughs with your Loss Control Consultant, let me introduce you to our Loss Control Team.

By Donna Motley, Vice President of Claims

Summer in Michigan! It seems like we have been waiting a long time this year for the arrival of summer. Not that we had a harsh winter or even a long winter – it just seems that our weather has been so up and down. I think when you live in a State that has snow, ice, cold temperatures and power outages, you work hard and like to play hard too ! At the first sight of 60 degree temperatures, people native to Michigan break out the shorts and flip-flops. We’ve been waiting and we are anxious!

First of all, we have to clean up from the winter or maybe even the left-over fall season. Now we can ride our bicycles or motorcycles. We can plant and maintain our flower or vegetable garden(s). We can hand-wash the car, wash windows, cut grass, trim bushes. We can now golf, play baseball, swim in a pool or lake, play horseshoes, cornhole, Jarts, you name it. Let’s not forget about boating, jet or water ski’s, tennis, maybe even Pickleball? Camping and campfires (setting up and tearing down). Traveling to other states or countries, hiking, and all around site seeing.

On the Road Again

Every time I think about a busy time at MTM, I remember many of my recent visits to our MTM shops. Our members are undergoing massive changes all the time. There are shortages of raw materials. There are shortages of personnel. The changing product line and the markets in which they serve all create a tech environment where every minute of the day is filled with important decisions. That always helps me keep a perspective for the busy times that MTM has. February is one of those extraordinarily busy times.

In actuality it starts the last couple days of January when Chris Doebler, MTM CFO, and Megan Brown, VP of Sales and Marketing and I meet with our actuarial team to discuss year-end results and loss reserves. It is a lively discussion/debate where we take many unknowns of future medical costs, future court decisions, and try to apply that to the over 500 open claims that we are presently working on. Once an agreement is reached for that, then we start plugging those into the expense categories and revenue of 2022 for a final financial statement. All of that needs to be completed in just a few days. On February 9th we presented our findings to the MTM Board Finance Committee and MTM Board Marketing Committee. These committees are made up of MTM members.

By Donna Motley, Vice President of Claims

Seems like – what used to be simple, is not so simple anymore! Procedures are established for a reason – to simplify things!

In an ideal world, when an employee is injured at work, the injury is reported to the Supervisor, Safety Representative and/or Human Resource personnel. A claim is filed on the appropriate forms with your Workers’ Compensation carrier (MTMIC !). The employee is sent to the Occupational Clinic where treatment is rendered; the injured worker may be referred to a specialist. The injured worker will treat until the injury is resolved, then discharged from care, and the employee is released back to work. The steps seem pretty cut and dry and while medical care is not considered “cheap” by any means, Michigan Workers’ Compensation includes a fee sched-ule resulting in 40-60% savings on most medical bills. As an employer, I’m sure you are astounded at times, when you see the dollar amount spent on some work related injuries.

By Travis Halsted, ARM, COSS, Loss Control Consultant

The Future is Here

As we look outside every morning, we see that the weather is improving, and we are starting to shake that cabin fever. The sun hits our faces on the way to work, and optimism fills us for the upcoming day. Regardless of the industry that you work within, most of us are all met with the same issue once we arrive in our parking spots. That issue is simply people, or the lack thereof. The ability to not only find people willing to work, but to secure them for a period of time that extends past the first day is quite a feat as of late. Very few places have been able to combat this issue, but some of the manufacturing facilities have found a possible resolution. This resolution is simply re-placing the position in which an employee would be with a collaborative robot, or often referred to as “cobots”. As labor costs continue to rise, as does the need for flexibility in automation, mixed with the aforementioned shortage of qualified workers, employers are finding these cobots to not only be an option, but more so as their only option. The sales of these robots had grown to $400 million in 2017 but is expected to climb as high as $7.5 billion by the year 2027.

The Decisions of February

Every time I think about a busy time at MTM, I remember many of my recent visits to our MTM shops. Our members are undergoing massive changes all the time. There are shortages of raw materials. There are shortages of personnel. The changing product line and the markets in which they serve all create a tech environment where every minute of the day is filled with important decisions. That always helps me keep a perspective for the busy times that MTM has. February is one of those extraordinarily busy times.

By Ruth Kiefer, Vice President of Loss Control

When you have a new hire, or you need to renew your employee’s industrial truck licenses have you ever wished you had a little assistance? Or a place for them to turn to have the class training? Well, I’m here to tell you, we have that assistance for you!

By Donna Motley, Vice President of Claims

As employer I am sure you are acutely aware of the demand for higher wages merely to employ “a warm body” – not always acquiring talents that were promised. I was at my dentist this past week and was told they are having an issue finding a receptionist; a person was hired but quit after one week. My dentist is a female; her husband periodically “helps out” in the office because they are short staffed. Jobs are available!

It seems the price of everything has universally increased. While the price of gasoline may fluctuate, I haven’t seen the same phenomenon happen at the grocery store! The local Meijer has installed a large number of “selfcheck- out” scanners, almost totally eliminating human cashiers.

Year End Closing 2022

We made it through the holidays. And Michigan winter is finally upon us. So is the closing of calendar year 2022. The MTM midyear actuarial review and subsequent monthly loss reviews are encouraging for our ninth MTM annual dividend in a row. That’s the preliminary good news. This is always a stressful time for me. We have had a good year so far, we are waiting to close the year with hopefully no large shock losses, and then we work with our actuary on the final loss numbers for the year. This year the normal year end closing stress is a bit higher. Remember that we moved the annual member’s meeting from October to early March. Traditionally at the October meeting we have given a brief synopsis of how the year looked through 9 months. It was always an estimate since there were still three months to go and large surprise losses can happen. However, this year with the annual member’s meeting in March, we won’t be giving you an estimate, but we’ll actually be giving you the year end result. As I have mentioned in an earlier newsletter, if all goes to plan we will have a great speaker, a great meal, and then hand out member dividend checks. Talk about pressure—however you can help—using your loss control skills and the MTM loss control team please do all you can to close out the holiday season with minimal losses. It’s good for your workers, it’s good for you, and it’s good for your dividend calculation.

By Ruth Kiefer, Vice President of Loss Control

This year our Loss Control department has completed accident investigations for more fork truck related injuries than any other year I have seen in my 17 years at MTM.We have had crush injuries from running over other persons feet, dropping loads on others, being ejected from the fork truck, and pedestrians being struck by fork trucks. So I am here to remind you of some safe travel practices that your operators should take when driving the industrial truck.

By Megan Brown, ARM, CWCP, CACW,
Vice President of Sales & Marketing

Nicole joined MTMIC as the Marketing Manager in November, 2022 bringing 10 years of insurance experience with a focus on Underwriting and working closely with agents on writing good business. She is trained in both personal and commercial lines, with an emphasis on Workers’ Compensation for the last few years. Nicole has a Master’s Degree in Business (MBA) and has obtained her Certified Authority on Workers’ Compensation (CAWC), Associate in Insurance (AINS) designations and is currently working towards her Chartered Property and Casualty Underwriter (CPCU) designation.

Nicole is very much a free spirit. She has a passion for working with people and building relationships. She grew up in a small town in Northern Michigan, right on Lake Huron so she has always had a love of being around the water. In the summer months, in her spare time, you will most likely find Nicole on a beach somewhere! She also enjoys spending time with her three kids, traveling, and working on her long bucket list with skydiving and bungee jumping as her next adventures to cross off her list!

The same dedicated staff remain in the Marketing department and I would like to share a little bit about them.

By Donna Motley, Vice President of Claims

Before setting goals, you need to evaluate the past. I’m not referring to New Year Resolutions – I’m referring to behavioral changes. Review the work related injuries that occurred at your facility this past year. If you count “zero” – keep up the good work – something is working in your favor! Is it your safety program? Safety meetings? Safety training? A Safety reward program? Open communication with your employees? Work place culture? All of the above?

Did your facility record a “near miss” or two? If so, consider a near miss to be a “warning” of what could have happened. Review the near miss scenario to de-termine what could have happened, i.e. the worst case scenario. Then review and implement corrective actions to avoid another such incident. Michigan is a “no-fault” system. Workers’ Compensation benefits are not deter-mined based on whether or not the employee was “at fault”, resulting in the injury. The only exception is if the employee is injured as a result of their intentional and willful misconduct, (i.e. – the employee punched the wall in anger).

2022 Results – 9 Month Review

In the last MTM newsletter I announced that MTM management and Board decided to move the traditional annual members’ meeting from October to March. The goal was to try a different time of year in hopes of improving turnout among members. One of the draws besides great speakers and meeting other MTM shop owners would be that in March we will know final yearend results. What a nice enhancement to the members’ meeting, instead of talking about a possible members’ dividend we hand out members’ dividend checks.

By Travis Halsted, ARM, COSS, Loss Control Consultant

In the upcoming year of 2023, I will be celebrating my 10 year anniversary with MTMIC. I have met some amazing people and been through incredible facilities that complete processes that truly change the world. Regardless of the type of facility, I am often met with the question of “what else can we do”. That facility may have a strong safety culture within their employees, and a proactive management commitment to health and safety, but they still want to do more. I can answer them quickly and with certainty. I simply tell them to find the third leg of their triangle of success. With that answer I often get a unique look, but they are usually intrigued and want to hear more.

By Glenda Moyle, Premium Accounting Manager

Well, we have started working on the January 2023 renewals. I have been working on these for over 35 years and it’s hard to believe that another year has sped by.

If you have an effective date in January you should have already received your payroll renewal form asking for new estimated payrolls for the 2023 policy year. The goal to accurately estimate payrolls reduces the chance of a surprise audit additional premium.

A common question I hear is what do we do if the payroll estimate form is not returned to MTMIC? Well, we use the higher of your 2021 audited payrolls or your current policy (2022 estimated) payrolls for your quote. It is never too late to send us back the form as we can always revise your payment schedule.

If you need another copy of the payroll form please contact me at Glenda.moyle@mtmic.com

Also, the 2023 renewal quote documents will be going out at the end of November so please watch your mail for them.

Experience Mod Calculation

It’s been some time since I wrote about Michigan workers’ compensation experience modifications and how they affect your workers’ comp premiums, so, it seems time for a refresher course. Experience modifications in Michigan are promulgated out by an outside rating agency that requires membership from all Michigan insurance companies. We submit to them data on every policy six months after it expires. We report payroll by class code and losses for every employer

This agency then produces an individual experience modification that is used by all insurance companies. To better walk you through this process, I’ve attached an exhibit with some letter designations for certain sections. Here is a simple explanation of the entire calculation.