Illinois Gov. Bruce Rauner has vetoed another workers’ compensation reform bill that was strongly opposed by the insurance industry.
He has nixed HB2525, which would have required pre-approval of workers’ comp insurance rates.
The legislative analysis of the bill stated that under HB2525, a workers’ comp premium rate “is excessive if it is likely to produce a long run profit that is unreasonably high for the insurance provided or if expenses are unreasonably high in relation to the services rendered.”
Rauner previously vetoed HB 2622, which would have created the Illinois Employers Mutual Insurance Co. by allowing the director of the Illinois Workers’ Compensation Commission Operations Fund to make a loan of $10,000,000 for the initial capitalization of the company as a nonprofit, independent public corporation, according the legislative synopsis of the bill.
According the Property Casualty Insurers Association of America (PCI), the two bills would have had profound negative consequences for injured workers, the business community and the state’s economic competitiveness.
PCI said HB 2525 would have established a burdensome regulatory price and profit control scheme.
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