Michigan is a wage loss state, meaning that a claimant does not receive wage loss benefits until he is able to demonstrate that a work injury has caused him to lose wages. Can an accountant who sustains a broken arm at work receive wage loss benefits? Not until she demonstrates that the broken arm has caused her to lose time from work. She may receive medical benefits, however.
Over 90% of the claims that are brought, are settled by way of a "redemption agreement." So how is the settlement calculated? A claimant's weekly benefit rate is multiplied by 52 (the number of weeks in a year) to get a annualized rate. For example, a worker with a rate of $430.00 per week, will have an annual rate of $22,360.00.
Settlements are reached based upon the perceived value of the claim. A worker with a "good" claim can demand up to five years of annual benefits. Weaker claims can demand between two and four years. Nominal claims are settled for as little as $250.00.
What makes one case better than another depends upon a myriad of factors including: testimony of treating physician, testimony of examining physician, causation, severity of disability, etc.
Below are the average redemption (settlement) amounts for the following years:
2003 $42,512.72
2002 $40,285.05
2001 $38,309.12
2000 $37,867.86
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