State Senator Dave Koehler (D-Peoria) voted to support workers’ compensation reform in the State Senate. According to Michael McRaith, Director of the Illinois Department of Insurance, savings resulting from this reform could result in more than $650 million per year and bring down insurance premiums by 12% to 18%.
“I have been talking to constituents for months about workers’ compensation reform,” Koehler said. “We all understand that the system needs to be fixed. It costs businesses too much money, and I’m not convinced that it even serves injured workers as well as it could. This bill, while not perfect, addresses some of the worst problems.”
House Bill 1698 makes a wide-variety of far reaching changes to the workers’ compensation system. Here is a list detailing some of the more substantial reforms:
* Reduces the medical fee schedule by 30%, meaning doctors will not receive as much money for treating injured workers; however, Illinois doctors still do well when compared to other states.
* Strikes a reasonable compromise to allow workers to choose their own doctors while preventing them from “doctor shopping” by allowing employers to create networks of doctors to choose from, much like a health insurance network.
* Requires doctors to follow American Medical Association guidelines for determining levels of disability, and creates a list of criteria that the Workers’ Compensation Commission must consider when making final disability determinations.
* Limits carpal tunnel awards.
* Makes it easier for employers to deny claims for injuries resulting from intoxication.
“I worked with the sponsor of this legislation to try to make sure that workers’ compensation continues to fulfill its original purpose,” Koehler explained. “An ideal system ensures that workers receive compensation for work-related injuries while protecting employers from unlimited civil damage awards. I don’t necessarily agree with every last change in this bill, and there are other provisions I wanted to see included, but I think this legislation does maintain a reasonable workers’ compensation system and provides important cost-savings for Illinois businesses.”
The legislation also helps address alleged abuses to the workers compensation system by establishing new standards for the Workers’ Compensation Commission. Members of the commission will have to abide by the State’s judicial code of conduct, undertake training every two years, refuse gifts from workers’ compensation attorneys, and have their own claims heard by independent arbiters. There are also new procedures for appointing arbitrators and criminal penalties for fraud. The bill requires the State to purchase workers’ compensation insurance from a third party rather than self-insure, which is the current practice.
“Another important aspect of this legislation is that we fight fraud and abuse,” Koehler said. “Alleged abuses by State employees cost taxpayers money we simply cannot afford.”