DATE: 

May 16, 2012

TO: 

All Insurance Companies, Self-Insured Employers, and Group Funds

FROM: 

Kevin Elsenheimer, Director

The 2011 Pay Lag Report showing the pay lag results by industry group as well as individual company is now available. While good improvement continues to be made, the current average is still 1 day longer than the time period required by statute. We cannot overemphasize the need to investigate all claims as soon as possible and provide payment of benefits to all entitled individuals within the 14 day timeframe required by law.

This report only covers claims where an initial Form 701 was submitted from 1/1/11 through 12/31/11. Only voluntary payment claims were selected. We have excluded any claims in which a Form 104A or 104C was filed, a Form 107 was received before the initial Form 701, or in which partial benefits were initially paid.

We urge you to review your company's performance over the last year. You should also review the manner in which your Form 701 filings are being made. Filling this form out incorrectly can impact the number of pay lag days. If you have any questions or would like to see the detailed report for your company, please contact Ken Smith at (517) 322-1879 or email him at smithk5@michigan.gov.