Insurer Group Says More Workers’ Comp Reform Needed in Illinois

Illinois Gov. Pat Quinn plans to sign a major overhaul of Illinois workers’ compensation system that he said will mean “significant saving” for the state, but at least one insurance carrier trade group asserted more work needs to be done to reform the system.

House Bill 1698 passed 62-43 in the Illinois House on May 31 evening just 48 hours after the same chamber rejected it.

Quinn said he “absolutely” will sign it, according to Associated Press reports. He said the legislation will help maintain the state’s economic competitiveness and will attack fraud and abuse in the workers’ comp system.

Steve Schneider, Midwest region vice president for the American Insurance Association (AIA), said despite lawmakers’ passage of HB 1698, future efforts to significantly reform the system remain necessary.

“AIA has actively worked with employers and legislators to promote adoption of meaningful reforms to Illinois’ workers’ compensation system,” Schneider said. “While perhaps well-intentioned, HB 1698 is unlikely to produce the much-needed outcomes to ultimately reduce the costs of Illinois’ overly-expensive system.”

Reforms advocated by AIA include the required use of the American Medical Association (AMA) Impairment Guidelines, employer direction of medical care, medical fee schedule reductions, and enhanced utilization review authority among others. While the legislation does address those issued, Schneider said the bill is ambiguous enough and flexible enough “to allow for continued systemic abuse.”

He questioned the claim by supporters of HB 1698 that it would save nearly $700 million in reduced expenses. Schneider said that claim has not been independently verified.

“Illinois’ workers’ compensation system continues to require meaningful reforms that will truly reduce costs and deter abuse in order bring the Land of Lincoln in line with the rest of the nation,” he said.

Republican lawmakers have complained that the legislation hits doctors too hard by cutting their fees, which will be reduced by 30 percent.

Topics Carriers Legislation Workers' Compensation Illinois