Rating Evaluation on MTM

About eight years ago, MTM management thought that getting an outside rating agency valuation of MTM would be helpful to the Board of Directors and MTM members. At that time, management felt confident about our results and financial integrity, however, having an outside agency conduct their own independent evaluation would be a proof source of what management was telling the Board of Directors and members. We chose an outside rating agency called Demotech. Demotech had over 30 years of small and mid-size insurance company rating evaluations, and was a known standard for insurance company evaluations. We proceeded down that path and received an “A, Exceptional” rating from Demotech. About three years later, we received an upgrade from Demotech one step higher to “A Prime Unsurpassed.”

Even with our Demotech rating, occasionally questions arose because the rating agency used by large insurance companies is a company called AM Best. AM Best is actually an individual’s name, Alfred M. Best, who started insurance company ratings over 100 years ago. AM Best specializes in large companies, but because of its history it remains the world gold standard for insurance company ratings.

By Donna Motley, Vice President of Claims

With inflation as a 40-year high, it seems the price of everything is increasing. Medical expenses are no exception.

Workers’ Compensation wage loss benefits are established by the State of Michigan, at the beginning of the year, every year, based on the State Average Weekly Wage. These weekly benefit rates, which includes a “maximum” rate, are published “on line” on the State’s website. Remember, we only handle Michigan Workers’ Compensation claims in our office. Wage loss benefits are calculated based on the highest 39 weeks of the previous 52 weeks of gross weekly wages of the injured worker, along with the number of claimed dependents allowed by the Workers’ Compensation Act. The rate established at the time of injury remains the same for the life of the claim. There is no cost of living increase, but the rate can be decreased if a claimed dependent no longer qualifies. There are decreases in the weekly benefit once an injured worker turns 65 years old – typically 5% per year or reduction taken when the injured worker begins taking Social Security benefits. Other than that, a weekly benefit rate established in 1997 is the same amount the injured worker would receive in 2022 if they are under the age of 65. Not much we can do about an established benefit rate.

The Compensation Advisory Organization of Michigan (CAOM) is responsible for a number of tasks including promulgation of modification factors, collecting and analyzing policy and claims data from all insurers writing workers’ comp insurance in Michigan, and administration of the Michigan Workers Compensation Placement Facility. They are governed by a nine-member Board of Governors. The members are a combination of local, regional and national carriers writing workers’ compensation policies in Michigan, with each carrier represented by an officer of their company. In October 2019 MTMIC was appointed to fill the seat from which another carrier resigned, with our CFO Chris Doebler designated as our representative. In April 2021 MTMIC was appointed to be vice-chair of CAOM and in April 2022 MTMIC, our representative Chris Doebler took on the role of Chair of the organization. Chris will serve in that role for the next year and, at the April 2023 Board of Governors meeting, will take on the role of Past Chair, with the current vice-chair moving up to the Chair position. Congrats Chris!

My name is Faris Saleem, the new intern at MTM. I started my role this past March and, so far, it has been one of the best work experiences. The wide range of fields offered at MTM such as business, accounting, finance, and marketing will present new opportunities for learning. I’m excited to explore these fields and my role at MTM. Previously, I was employed in the technology space as a computer specialist at Best Buy. I’m more than happy to offer my technological background to assist the office in any way I can. This May, I will be graduating from Schoolcraft College with my Associate of Science degree. In the fall, I plan to pursue my bachelor’s degree in computer science at the University of Michigan in Ann Arbor. Outside of MTM and school, I enjoy traveling, washing my car, and building computers. I’m thrilled to continue working at MTM, and I look forward to meeting more of you soon.