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  • Gov. Rauner Vetoes WC Premium Reforms

    At a time when the costs associated with Workers’ Compensation claims fall but insurance premiums continue to rise, the Illinois General Assembly passed two bills intended to make Workers’ Compensation Insurance more cost effective for employers while continuing to protect injured workers. Governor Rauner has vetoed both bills.

    HB 2622 allowed for a State chartered not for profit insurance company to offer competitive Workers’ Compensation Insurance. HB 2525 primarily added oversight to the process of setting Workers’ Compensation premiums so they could be more in line with the recommendations being made by NCCI.  As you know, the NCCI recently recommended a 10.9 percent cut in workers’ compensation insurance premiums for 2018.  This was the fifth consecutive rate reduction that has been recommended, yet Illinois law does not require compliance with these recommendations.  Without this oversight, Workers’ Compensation Insurance carriers are allowed to charge whatever premiums they wish, even if they are not reflective of the costs incurred.

    Both bills would have increased competition in the marketplace, providing Employers with cost savings while protecting the rights of injured workers.  Governor Rauner vetoed HB 2622 on 08/18/2017 and vetoed HB 2525 on 08/25/2017. 

    Governor Rauner has pushed back that these bills were not “real reforms,” but that’s only because they were reforms of his multi-billion dollar insurance company cronies.  Call your legislators and ask them to stand with Illinois Employers and Workers to override these vetoes.

     




  • Legislative Happenings on WC Reform

    As the 99th General Assembly regular session draws to a close on May 31, 2015, workers’ compensation “reform” has been a hot item on Governor Rauner’s Turnaround Agenda. On April 6, 2015, Governor Rauner released a 38-page detailed outline of his Turnaround Agenda. Workers’ Compensation “reform” was the first and most detailed proposal in his outline. Workers’ Compensation has become a bargaining chip in exchange for any increase in the state’s minimum wage and other worker-friendly legislation.

    In response, House Speaker Madigan convened a Committee of the Whole on May 5, 2015 to discuss the compensation received by injured workers. This rarely used format allowed the Representatives to examine how Governor Rauner’s proposals would impact the individual injured on the job. A number of speakers testified, including injured workers from both Illinois and neighboring states, so comparisons could be drawn between the various State’s systems. Representatives were able to ask questions from the witnesses.

    Several of Governor Rauner’s proposals were introduced on May 22, 2015 by Senate Minority Leader Christine Radogno (R-Lemont) and House Minority Leader Jim Durkin (R-Western Springs). State Representative Jay Hoffman (D-Belleville) presented floor amendments consistent with what the Governor wanted in his Turnaround Agenda in the House. Democrats unanimously voted against the proposed “reform” legislation while Republicans voted present or did not vote on this particular legislation.

    On May 27, 2015, the Senate Judiciary Committee voted down the Governor’s workers’ compensation reform bill. We will update you as the legislative session draws to a close through our email newsletters.






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