Reform Of Workers Compensation In Illinois

After highlighting this issue as a priority in his 2005 State of the State address and leading negotiations for several months, Gov. Rod R. Blagojevich announced an agreement with business and labor leaders on the first comprehensive changes to the workers’ compensation system in almost 20 years. The Governor, business and labor leaders and members of the General Assembly worked together in an agreed bill process that led to the dramatic changes that will reduce business costs, increase benefits and fight the fraud that hurts everybody.

Illinois is the 19 th most expensive state in the nation when it comes to workers’ compensation premiums, and Illinois companies pay 40 percent more for workers compensation than neighboring states Michigan, Wisconsin and Indiana. According to the National Insurance Crime Bureau, workers’ compensation fraud costs employers $6.5 billion a year. This agreement addresses all of these issues and more.

• Implementing a medical fee schedule. Creates cost containment in workers’ compensation by joining 42 other states in creating a medical fee schedule. This medical fee schedule will be indexed to the Consumer Price Index (CPI) and will save Illinois businesses millions of dollars annually.
• Worker benefits to increase substantially. Increases the minimum benefit for a worker killed on the job to the greater of $500,000 or 25 years of payments (was approximately $400,000 for 20 years of payments). Increases the burial benefits to $8,000 for fatally injured workers from $4,200.
• Establishes a fraud unit. Creates a workers’ compensation fraud statute and investigation unit within the Division of Insurance of the Illinois Department of Financial and Professional Regulation to investigate charges of workers’ compensation fraud, including uninsured employers, and allows for reporting of fraudulent claims by employees.
• Creates a third panel to the Workers’ Compensation Commission. This will expedite resolution of disputed claims and also expand and expedite emergency hearings to resolve cases within 180 days, which will allow injured workers to receive quicker treatment and return to work earlier. This will result in claims being heard and resolved faster, which will decrease litigation costs.