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Indiana beefs up poaching effort while more workers’ comp scandals exposed

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* Indiana has hired a new staffer to poach businesses from Illinois

Indiana plans to up the ante, [Blair West, a spokeswoman for the Indiana Economic Development Corporation] said – officials have scheduled a news conference Monday to unveil details of a wider effort. The state is targeting small- to mid-size businesses, and much of the effort to date has been in the Chicago metropolitan area.

“We’ve hired a person to recruit businesses,” West said. “He’s in northwest Indiana.”

According to the story, the Illinois Chamber’s Doug Whitley recently sent an e-mail to his members saying Illinois is finally starting to turn the corner on fiscal responsibility. And, like many of us, Whitley’s tired of the bashing from outsiders…

“It’s time for Illinois to start sticking up for itself,” Whitley wrote.

“I won’t be an apologist for all of the irresponsible budgets and outrageous actions of the past decade, but after authoring many critical pieces, I think it appropriate to acknowledge that Governor Quinn and the Democrats who control the General Assembly have at long last finally begun to accept responsibility and take positive steps to confront our fiscal and policy ills in a more favorable manner.”

* As much as I agree with Whitley, neither he nor I would say that all our problems have somehow magically been solved. Far from it.

For instance, the Belleville News-Democrat has uncovered even more shenanigans at the Illinois Workers’ Compensation Commission

Illinois workers’ compensation arbitrator Jennifer Teague offered to accommodate an assistant attorney general by setting a special hearing date in a difficult case during the same conversation in which she asked for help in speeding up resolution of her own personal injury case, according to a three-page report from the Office of the Executive Inspector General for Attorney General Lisa Madigan. […]

The report stated that Teague asked assistant attorney general A for help in getting a check for her claim by contacting Susan LeMasters, an employee of Central Management Services, whose job it is to facilitate workers’ compensation claims for state and private claimants. In exchange, she would agree to set a “special hearing date” in a case the attorney general’s office wanted to settle. […]

Teague canceled a scheduled hearing Aug. 5 in the Anderson case, stating she was taking a furlough day. When the assistant attorney general tried to reschedule the hearing, Teague said “she was being forced to take 24 furlough days that she was never going to get the Jo Anderson case done because she was going to have to keep taking furlough days until the last day of the Mount Vernon docket,” according to the report.

“Arbitrator Teague then told AAGA (assistant attorney general A) that she wanted to settle her personal workers’ compensation case, involving a cubital tunnel claim, with Susan LeMasters and asked AAGA if there was a way to avoid the 180-day wait for the payment on her claim. …”

“Arbitrator Teague then said to AAGA that if she (Teague) could get her case settled with Susan LeMasters, then she would give AAGA a special hearing date in the Jo Anderson case.”

Teague, you will recall, was the same arbitrator who allegedly attempted to hold a secret hearing for the former state cop who was injured in a crash which killed two people and for which he pled guilty to reckless homicide.

And

In an e-mail to a Belleville lawyer representing a client in a pending injury case assigned to another workers’ compensation hearing officer, Jennifer Teague provided legal guidance and confided that her bosses considered her fellow arbitrator a “fool.” […]

Teague, 37, gave advice and conducted legal research for private attorneys who specialized in workers’ comp cases, the e-mails showed. It could not be determined whether any of these cases were before Teague.

And

[Arbitrator John Dibble] has ruled in favor of more than 125 Menard Correctional Center guards and employees who hired [attorney Thomas Rich] to obtain injury settlements for repetitive trauma ranging from about $15,000 to more than $150,000. In October, Dibble received $48,790 in his own settlement he said stemmed from when he fell on steps at the commission hearing site in Herrin on Nov. 12, 2009, causing him to develop an unusual condition called, “post traumatic carpal tunnel syndrome.”

“Your bride called this a.m. and asked to purchase tickets to South Pacific at the Fox for the matinee show. … I tried to leave message on her cell phone … think I succeeded … but if not, please tell her no problem,” Rich wrote to Dibble via e-mail.

In.The.Tank.

And

Former Illinois Assistant Attorney General Bill Schneider said he passed along all necessary information regarding the workers’ compensation case involving former Illinois State Trooper Matt Mitchell, who pleaded guilty to reckless homicide in connection with a high-speed crash that killed two Collinsville sisters.

Schneider, who represented the state, wrote Saturday in an e-mail to the News-Democrat that he informed his supervisor of “all unusual aspects of the Matt Mitchell work comp case.”

“I believed that I fulfilled my obligations and passed along all necessary information to my direct supervisor,” Schneider wrote.

But Ann Spillane, chief of staff for Illinois Attorney General Lisa Madigan, maintained that after searching their e-mails, they have found no evidence that Schneider ever told his supervisors about workers’ compensation arbitrator Jennifer Teague’s attempts to have the Mitchell hearing so reporters would not attend.

Sheesh.

* Meanwhile, the workers’ comp reform negotiations took a twist last week when Gov. Pat Quinn’s office hosted a negotiating session. The Illinois Manufacturers pick up the story from there

While Workers’ Compensation negotiations are typically conducted between business and labor only, this discussion [last] week included a host of other sectors including trial lawyers, hospitals, doctors, insurers, physical therapists, and firefighters who are all generally opposed to Workers’ Compensation reform.

The IMA noted vigorously that each of these groups is interested in protecting their access to some of the $3 billion that flows through the system every year while it’s the employers that actually pay the bills. [IMA President Greg Baise] noted that in previous testimony on SB 1066, a large number of physicians testified repeatedly that they charge more for Workers’ Compensation cases than regular cases covered by insurance.

The Chamber’s Whitley adds

Despite considerable work on the issue to date, Quinn’s assumption of leadership from the legislature will mean starting the process over again. Hence, Thursday’s meeting was largely introductory in nature.

However, the Chamber and the other Joint Employers effectively delivered a simple message to the Governor and the legislative leadership: you must clearly define what the outcome of this process will accomplish. Employers deserve to know on the front end if the Governor is committed to real reforms that will dramatically improve our rank of 3rd most expensive system or if he is only interested in window dressing.

* Related…

* AG Madigan opposes ComEd automatic rate hikes: “We have some serious concerns about the proposal in its current form and are strenuously opposed to it. It will seriously harm consumers. We expect this to be a hard fought issue,” Madigan’s office said in a statement.

* AG Madigan undecided on health care lawsuit

* Chicago commercial real estate market dodges collapse, begins recovery: Loan delinquencies are falling, property values are rising and leasing is picking up at the area’s office buildings, shopping malls and warehouses, signs that the market is in the early stages of a broad-based recovery. Though it is far from reclaiming the ground lost in the deepest downturn since the early 1990s, Chicago clearly will avoid the devastating crash many predicted two years ago.

* US House bill threatens O’Hare expansion funding

* An industry re-invented at Chicago Auto Show

* Dark times, bright future: Inside the Mitsubishi deal:Jerry Berwanger admits now there were times he thought Mitsubishi’s Normal manufacturing plant could close. “Yeah, I did,” said the plant’s executive vice president and chief operating officer. “I couldn’t show that. I didn’t want to show that”

* Academics see DuPage Airport improvement

* Rantoul Pork Plant Hiring

* More pork coming to Clinton County: Carlyle-based company adds 50,000 sows

posted by Rich Miller
Monday, Feb 14, 11 @ 5:57 am

Comments

  1. It would seem that the free tickets handed out by attorney Thomas Rich would be a violaion of the state ethics rule banning such gifts, even a spouse can’t accept them. Looks like alot of people could be in hot water for that also.

    Comment by nothing but banter Monday, Feb 14, 11 @ 8:27 am

  2. ===free tickets handed out===

    They weren’t free.

    Comment by Rich Miller Monday, Feb 14, 11 @ 8:32 am

  3. Are these arbitrators still on the job? If so, why?! What a bunch of goofs. Please don’t tell me they are subject to a bargaining agreement! Lol

    Comment by Tony Monday, Feb 14, 11 @ 8:35 am

  4. –The IMA noted vigorously that each of these groups is interested in protecting their access to some of the $3 billion that flows through the system every year while it’s the employers that actually pay the bills. [IMA President Greg Baise] noted that in previous testimony on SB 1066, a large number of physicians testified repeatedly that they charge more for Workers’ Compensation cases than regular cases covered by insurance.–

    On this issue, the GOP will be walking the razor’s edge with the docs and IMA types.

    You’ll know you’ve got something real in “reform” if the Dems stick it to the personal injury lawyers and the GOP does the same to the docs.

    Comment by wordslinger Monday, Feb 14, 11 @ 8:45 am

  5. Wow…

    Congratulations to the Belleville News-Democrat for some interesting coverage. Looking forward to see what else they come up with.

    And remember kids as Kass always says “the first one on the bus gets the best seat”

    Comment by OneMan Monday, Feb 14, 11 @ 9:08 am

  6. My mistake Rich, sorry

    Comment by nothing but banter Monday, Feb 14, 11 @ 9:16 am

  7. While the ticket purchase transaction may have been proper, it is the APPEARANCE of impropriety that could be a bigger issue. I don’t think it looks too good on the state when the arbitrator who is handing out the awards to the attorney’s Menards clients (with him pocketing 15% to 20% of it) does not have more of an “arms length” relationship.

    As it is though, what most people don’t understand, is that it is not a change in arbitrators that will effect a different outcome in work comp awards but change in the Work Comp Act that will effect the change. In the event these arbitrators were replaced, the only change would be in the name of the arbitrator because the Democrats will make sure that another employee friendly arbitrator is chosen.

    Comment by Good times in Illinois Monday, Feb 14, 11 @ 10:09 am

  8. This is somewhat pleasantly surprising.

    For many years I have heard of folks getting by with workers comp claims and it was futile for those in the system opposing them to do so without being overridden. It has been the scam of the day for years and now its out in the light.

    Scammers get their cash, lawyers get their cash, doctors get their cash, and we haven’t a clue because…..? Pretty simply….let someone else watch the money. You know, put the fox in charge of the hen house.

    Until we have strong, enforceable and enforced, ethics laws, and we actually apply harsh penalties for ALL concerned, this too will pass and we’ll be on to the next scam of the day.

    Comment by Justice Monday, Feb 14, 11 @ 10:29 am

  9. GTII @ 10:09 - I don’t believe that a lot of the folks in the GA or the many bureaucrats in State Government have read the appearance of impropriety section of the ethics test. Even though it is mentioned in almost every question on the test.

    Could someone explain to me why the mandatory insurance issue in the National Health Plan is raising such a ruckus and mandatory auto insurance did not. I am not taking a position on either side but it seems to me that the mandatory auto insurance is required to protect other drivers from costs associated with having to pay higher rates and to carry more coverage to protect themselves from bearing the costs of the uninsured driver. Isn’t the mandatory health insurance to protect the currently insured from higher insurance and hospital costs caused by those who don’t carry insurance? It seems to me they are the same.

    Comment by Irish Monday, Feb 14, 11 @ 10:38 am

  10. ===Could someone explain to me why the mandatory insurance issue in the National Health Plan is raising such a ruckus===

    Prolly because BHO so stridently campaigned against it.

    Comment by Rich Miller Monday, Feb 14, 11 @ 10:39 am

  11. I’m waiting for the Belleville paper to disclose how the arbitrators got their jobs. My money is on them being appointees from the Blago era. His lasting legacy is the number of incompetents and people of questionable ethics that are still on the state payroll.

    Comment by Stooges Monday, Feb 14, 11 @ 10:52 am

  12. – Could someone explain to me why the mandatory insurance issue in the National Health Plan is raising such a ruckus and mandatory auto insurance did not–

    Gov. Romney could probably explain it best. He’s familiar with both sides of the issue.

    Seriously, in that anxious and angry summer of town hall meetings, it was the handiest club available to hammer the majority for a whole host of grievances, real and imagined.

    Comment by wordslinger Monday, Feb 14, 11 @ 10:57 am

  13. Stooges I suspect is correct.

    The workman comp issue may become someone’s Waterloo. More than likely the honest, hardworking, state employee.

    Comment by Leave a light on George Monday, Feb 14, 11 @ 11:05 am

  14. – Could someone explain to me why the mandatory insurance issue in the National Health Plan is raising such a ruckus and mandatory auto insurance did not–

    Actually, because people choose whether or not to own a car and drive. You can choose not to drive and take public transportation, walk, bike, or hired vehicles, and can avoid paying car insurance. Granted, this is not feasible in many parts of the state. On the other hand, the mandatory insurance in a NHP is a charge simply for being alive.

    There is a big distinction between the two, and it isn’t all political. Yes, politics definitely plays a part in it, but there is a huge fundamental difference between the two.

    Comment by South Side Mike Monday, Feb 14, 11 @ 11:17 am

  15. The difference between mandatory auto insurance and mandatory health insurance is that the former applies only to people who drive or own vehicles that are driven on public roadways, while the latter applies to absolutely everyone with no exceptions.

    A person could avoid the obligation to purchase auto insurance by simply choosing not to own a car. The only way to avoid the obligation to have health insurance would be to stop living.

    Comment by Secret Square Monday, Feb 14, 11 @ 11:28 am

  16. It’s not as simple as that - “choose to stop living”. The more apt analogy would be to choose to stop accessing the health care system in any way - no doctors, no hospitals, no pharamaceuticals - because embedded in all of their costs structures is the cost of care to the uninsured and underinsured. Look, if you want universal coverage, there are only two ways to get there. Either a government plan that everyone is enrolled into at birth or a market-preserving plan based upon mandatory purchase. That’s why Republican thought, pre-Obama, was to support the individual mandate as opposed to single-payer. When Obama called their bluff and embraced individual mandate, suddenly that became an affront.

    Comment by Anonymous Monday, Feb 14, 11 @ 11:42 am

  17. And all this sturm und drang has been in defense of freedom for 16% of the population to not have health insurance? I don’t buy it (but I do spend a lot on insurance).

    Comment by wordslinger Monday, Feb 14, 11 @ 11:43 am

  18. ===sturm und drang===

    Nicely done. But how about we stick to Illinois, please.

    Comment by Rich Miller Monday, Feb 14, 11 @ 11:45 am

  19. Lisa madigan has been attorney general for 8 years thank god the Belleville news has finally started doing her job for her.

    Comment by Fed up Monday, Feb 14, 11 @ 11:47 am

  20. Teague’s gotta go. Shje should resign immediately or be fired.

    Comment by Fed-Up Monday, Feb 14, 11 @ 11:51 am

  21. Many may not realize it but there are exceptions to the mandatory insurance regulation based on one’s affiliation with a religion where health insurance would be against religious beliefs. Of course I think those taking such an exemption would also be opting out of Social Security, etc.
    Just, fyi.

    Comment by Nuance Monday, Feb 14, 11 @ 12:17 pm

  22. For years workers compensation judges have palled around with lawyers who have cases before them. I handled a case for a client one day, when at lunchtime the judge went off with the defense lawyer to lunch. When I inquired, I was told the judge always went to lunch with the attorneys. I was told that it was a small town without many restaurants and it wouldn’t affect the case outcome. For some reason my client didn’t believe it.
    So, I am not suprised by what is going on now. However, the lawyers should be reported to the Attorney Discipineary Committee for their part in this.

    Comment by Elliott Ness Monday, Feb 14, 11 @ 12:42 pm

  23. I know we’ve been asked to stick with Illinois, but the legal differences between mandatory auto insurance and the federal national health insurance mandate are:

    1) The federal government is, in theory, one of limited, enumerated powers. General police powers such as enacting these mandates are reserved to the states.
    2) Driving is a privilege, not a right, and reasonable conditions can be imposed when allowing you to enjoy some privilege. Mandatory insurance covers your liability for damages you cause others, not what you do to yourself.

    On the topic of workers’ comp, I suspect that most of what is going on is not the result of some evil conspiracy so much as inside information. Once one or two guards at a prison learn how easy it is to get workers’ comp, a thousand of them know about it and a hundred of them apply. Once an attorney knows the score, he encourages clients to bring a claim where an inexperienced attorney might advise you against wasting your time. And the temptation for an arbitrator to file a claim based on facts that he or she, in good conscience, would base an award must be pretty hard to resist. That is not to say that there is no underhanded behavior, but a systemic change may be more important than just getting rid of the truly bad apples in the system. The game itself is corrupt, not just a few players.

    Comment by Pat Robertson Monday, Feb 14, 11 @ 1:04 pm

  24. Workers comp.we be a sham as long as the troika
    is in power.It will be written by the trial lawyers,doctors and hospitals&unions.Contractors manufacturing,Ford,Mitsu,Wal Mart and small business be damned.If you don’t like it move.This has been MJM reasoning for a long time.What does it take to wake these people up.Bravo to Indiana for rubbing our nose in it.Maybe it might wake them up.The days of sleeping are over.

    Comment by mokenavince Monday, Feb 14, 11 @ 1:11 pm

  25. mokenavince, you ever hear of putting a space behind periods? Your comments are unreadable.

    Comment by Rich Miller Monday, Feb 14, 11 @ 1:12 pm

  26. - Your comments are unreadable. -

    I’m not sure it’s the just lack of spaces…

    Comment by Small Town Liberal Monday, Feb 14, 11 @ 1:28 pm

  27. *just the lack

    I hate irony.

    Comment by Small Town Liberal Monday, Feb 14, 11 @ 1:28 pm

  28. Yeah. When commenting on another’s lack of writing skills, it always helps to proofread.

    Comment by Rich Miller Monday, Feb 14, 11 @ 1:31 pm

  29. The general assemly tssed the old work comp comission as part of a broad sweep of boards and comissions when Blao took office. Blago then restaffed the boards and comissions. Where able, he fired a lot of admin law judges and replaced those as well.

    Comment by Ghost Monday, Feb 14, 11 @ 2:12 pm

  30. –Workers comp.we be a sham as long as the troika
    is in power.It will be written by the trial lawyers,doctors and hospitals&unions–

    What’s the point here? If you’re trying to communicate something, put in an effort. we be a sham

    Comment by wordslinger Monday, Feb 14, 11 @ 2:53 pm

  31. it just occured to me, Indiana cant even decide on or implement a time zone, not sure how good of a business climate they can put together :)

    Comment by Ghost Monday, Feb 14, 11 @ 3:42 pm

  32. Ghost, Indiana has many time zones, depending on where you are and the time of the year.

    Options, man. That’s what business wants.

    Comment by wordslinger Monday, Feb 14, 11 @ 3:55 pm

  33. wordslinger, gov. mitch has unified the time zones. He does get things done.

    Comment by Rich Miller Monday, Feb 14, 11 @ 4:17 pm

  34. Speaking of Blago starting this. Anyone know where his first Work Comp appointee ended up?

    Comment by not me Monday, Feb 14, 11 @ 4:39 pm

  35. Sorry for my ignorance on this, but shouldn’t we expect our Attorney General to watch out for this Worker’s Comp fraud stuff? If everyone else in govt apparently knew about it, then why didn’t the AGs office? Presumably, the states attorneys would be on the taxpayer side of the issue.

    But what about the Worker’s Compensation Fraud Investigation Unit? Who was in charge there? Would we expect them to be a line of defense?

    Comment by tired of press Monday, Feb 14, 11 @ 4:52 pm

  36. –gov. mitch has unified the time zones. He does get things done.–

    Not quite. Northwest and Southwest are in Central Time Zone, while the rest is in East. In addition, not everyone is on board with the mandated DST. Old habits are hard to break.

    Comment by wordslinger Monday, Feb 14, 11 @ 4:54 pm

  37. My mistake then. That’s one of his big triumphs he points to.

    Comment by Rich Miller Monday, Feb 14, 11 @ 5:12 pm

  38. And the question I keep asking and wish BND would as well - who at the state agency agreed to pay the claims? Any adjuster whether they work for the state or an insurance company has to review the claim and decide whether to pay or not pay based on the evidence in the claim file. The defense attorney, whether private or an AG, can make recommendations but ultimately the adjuster decides whether to pay. I’m sure that very few of these cases went to trial - they were settled out of court. If they were fraudulent why were they paid?

    Comment by Marcus Agrippa Monday, Feb 14, 11 @ 5:16 pm

  39. Workers Comp fraud unit is underfunded. They basically have been going after uninsured employers to either shut them down or fine them. They don’t have the resources to do that well. Part of recent proposed work comp legislation was to provide more money to unit.

    Comment by Marcus Agrippa Monday, Feb 14, 11 @ 5:20 pm

  40. Meh, you’re never sure what you’re getting with that guy. He’s a nasty trash talker one second, then the lecturing voice of civility the next.

    He’s trying to find his niche among the GOP presidential contenders.

    He kind of called out the yabbos on their general incivility over the weekend at CPAC with this:

    “We will need people who never tune in to Rush or Glenn or Laura or Sean, who surf past C-SPAN to get to SportsCenter,” and that to attract voters, it would “help if they liked us, just a bit.”

    Walk it like you talk it.

    Comment by wordslinger Monday, Feb 14, 11 @ 5:36 pm

  41. Thanks Rich for the heads up.

    Comment by mokenavince Monday, Feb 14, 11 @ 6:13 pm

  42. You’re welcome. :)

    Comment by Rich Miller Monday, Feb 14, 11 @ 6:20 pm

  43. Crain’s pops up with the Indiana, anti-Illinois campaign.

    The headline: “Illinoyed by Higher Taxes?”

    I guess that trumped “Indiana Means Business” as the top creative choice. The Jimmy John story to date is featured, as is lots of tax hike press.

    Your contact for your IndianaSolution is E. Mitchell Roob, secretary of commerce.

    Roob.

    Didn’t make that up.

    Once you get to know him, perhaps you can call him the informal equivalent of Roob — like from Rob to Bob.

    http://www.stateofyourfuture.com/illinnoyed

    Comment by wordslinger Monday, Feb 14, 11 @ 7:13 pm

  44. Just curious….does Indiana have a workers comp fraud issue like this?

    I hear a voice calling in the wilderness….”Lisa…Lisa….where are you Lisa??????”

    Comment by Park Monday, Feb 14, 11 @ 7:55 pm

  45. ws, Mitch is a pretty good guy. He and I worked together in Edgar’s early years as Sec of State.

    Comment by steve schnorf Monday, Feb 14, 11 @ 8:39 pm

  46. If the Metra Board weathered the many calls for their replacement after multiple scandals, I wouldn’t count on any personnel changes at the Workers’ Comp Comm’n.

    Comment by Anonymous Monday, Feb 14, 11 @ 9:25 pm

  47. Get it through your heads, this is not fraud. If you have carpal tunnel in IL and you work, you have a valid claim. It is the law, not fraud.

    Comment by moving east Monday, Feb 14, 11 @ 9:31 pm

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