Illinois Governor Looks to Reduce Worker’s Comp Costs

High on the list of Illinois Gov. Bruce Rauner’s legislative priorities is reducing the amount employers pay for workers’ compensation insurance.

Illinois currently ranks 7th nationwide for the highest cost per $100 of salary, according to the Oregon Department of Consumer and Business Services, according to Rauner.

He said one of the reasons for high costs is that Illinois compensates workers for injuries that are related in any way to their job. Rauner wants to raise that standard so workers only would be compensated if an on-the-job accident is more than 50 percent responsible for the injury.

He also wants to cut the fees paid to some medical providers by 30 percent, and end compensation for injuries that occur while an employee is traveling to and from work.

Opponents say the changes create a system that’s stacked against workers, who could be burned, maimed or injured in other ways but receive no compensation. They also say changes approved in 2011 created huge savings, but insurance companies aren’t passing those savings along to employers.

Labor unions also worry that changes could create a disincentive for employers to provide safe workplaces.

Rauner said if the changes are enacted, he’ll support increasing the minimum wage by 25 cents per year beginning in 2016, reaching $10 per hour by 2022. That’s much slower than Democrats would like.