Have we been remiss in not reporting injuries to the state?

Q: “I am relatively new to my job as human resources manager in this facility. I was asking the person who used to handle workers’ compensation claims before I was hired how we were handling them. He stated that for injuries, we have employees use their BCBS coverage. If there are out of pocket expenses, we reimburse them. He stated we do this for two reasons: First, we are fully self-insured, and second, because the injury has never been severe enough to warrant an insurance claim. I am not comfortable with this procedure at all. Is it acceptable to handle claims this way?” - Dorothy, Michigan