By Megan Brown ARM, MIP, CWCP, CAWC
President
As we move through the second half of 2025, it’s clear that costs are higher than they were just a few years ago. Like many of our policyholders, we at MTM have also experienced increases in our operational expenses—including one of the most significant drivers: medical inflation.
Medical inflation refers to the rising cost of medical procedures and treatments, many of which are routinely provided to injured employees. Several factors contribute to this increase:
- A growing and aging workforce
- Rising labor costs for healthcare providers
- Advancements in medical technology
- The increasing complexity of the healthcare system
Despite these challenges, MTM works diligently to manage these costs while adhering to the State of Michigan Workers’ Compensation Fee Schedule. This fee schedule standardizes reimbursement rates for medical services, ensuring cost control, reducing billing disputes, and promoting consistent, quality care for injured workers.
However, not all healthcare providers bill in accordance with this schedule—some charge significantly more. This is where MTM’s medical cost containment service plays a crucial role.
How MTM Saves You Money
MTM has every medical bill submitted for workers’ compensation claims reviewed by a third party for savings and accuracy. Using cost containment tools and expertise including strategic utilization of certified professional coders, we reduce charges consistent with what the fee schedule allows followed by access to preferred provider organization discounts delivering maximum savings. The results speak for themselves:
- 72% net savings—This means that for every $100 billed, the fee schedule and PPO discounts, when properly applied, may allow only $28 reimbursement, resulting in a $72 savings.
Voluntarily paying medical expenses without utilizing the fee schedule and cost-containment measures provided through MTM may result in significantly higher costs than what is actually owed. MTM policyholders benefit from precisely managed claim expenses, which contribute to an accurate and often reduced experience modification factor. This, in turn, may lead to lower insurance premiums and the potential for enhanced dividend opportunities. Please note, however, that dividends are not guaranteed.
The Bottom Line
Rising costs are a reality—but with MTM as your workers’ compensation insurance carrier, you have a partner committed to controlling medical expenses and protecting your business. Let us do the work of ensuring fair, compliant, and cost-effective medical care for your injured employees.
