Capitol Fax.com - Your Illinois News Radar » Caterpillar expresses strong reservations as workers’ comp bill advances
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
Caterpillar expresses strong reservations as workers’ comp bill advances

Sunday, May 29, 2011 - Posted by Rich Miller

* Caterpillar was at the heart of a huge controversy earlier this year after its CEO revealed he was being courted to move the company’s headquarters to another state because of Illinois’ business climate. The workers’ comp reform bill was seen by many as a chance to show Cat and other business leaders that the state was getting its act together. But Cat is dissatisfied with the workers’ comp reform plan which overwhelmingly passed the Senate yesterday. From a press release…

“At Caterpillar, our goal has been, and remains to help make Illinois one of the best states in the union for attracting investment and jobs. This legislation is a small step toward lowering the cost of doing business in Illinois. However, we remain concerned it will not put the state in a position to attract additional investments and jobs.”

“We are not opposed to this bill, but even with this change, more work needs to be done, or Illinois will continue to struggle to find companies willing to invest and grow their operations in the state. We will continue to encourage state officials to work toward meaningful reforms that will improve the business climate in Illinois.”

* Two Senators who represent the Peoria area, where Cat is based, went at it on the floor yesterday

Sen. Darin LaHood, R-Dunlap, charged the bill would not make Illinois competitive with other states. LaHood ticked off how Caterpillar decided to build an excavator plant in South Carolina and an engine plant in Texas as a “direct result of our workers’ compensation system here in Illinois.”

But Sen. David Koehler, D-Peoria, shot back with a frank question: “Is this better or worse than what the status quo is? I say it’s better.”

* Lots of Republicans who voted for the bill also expressed reservations during debate

“It’s important that we highlight, not to just the employers in Illinois, but to people who are looking at making investments around this nation that our job is not done here. This may not even be getting to first base,” said state Sen. Bill Brady, R-Bloomington. […]

“I would hope that we’re all open to a realistic review. If the costs don’t come down, we need to come back, but of course it needs a little bit of time to work,” state Sen. Minority Leader Christine Radogno, R-Lemont, said on Saturday.

* Sen. Brady also expressed regret at the 30 percent reimbursement rate hit taken by by the medical community. And the Medical Society made this point yesterday about that cut

Businesses said a 50 percent cut would be best, while medical groups said anything beyond 20 percent would be too painful for doctors and hospitals.

“Yes, Illinois competes for business, but you also compete for physicians,” said James Tierney, lobbyist with Illinois State Medical Society. “Fifty percent leave the state already. This legislation will make a very, very harsh practice environment that much worse.”

* Republicans say sponsoring Sen. Kwame Raoul’s harsh closing remarks cost him three SGOP votes

With the bill’s fate now in the hands of the House, which reconvenes today, Raoul gave a vigorous response to the lineup of mostly Republican critics who said the legislation didn’t go far enough.

“This is major reform, and you all cannot deny it. I refuse . . . to accept the characterization that this is just a step in the right direction. That’s political speak,” Raoul said. “This is major reform.”

Listen to Raoul’s remarks…

* Related…

* Senate approves workers’ comp reforms

* Editorial: Give OK to workers’ comp bill

       

9 Comments
  1. - wordslinger - Sunday, May 29, 11 @ 2:53 pm:

    –“Yes, Illinois competes for business, but you also compete for physicians,” said James Tierney, lobbyist with Illinois State Medical Society. “Fifty percent leave the state already. This legislation will make a very, very harsh practice environment that much worse.”–

    Wait a minute. What does that have to with workers comp? Doctors here can’t make a living if you cut workers comp rates? They would still be the second highest rate to medical providers in the country, correct?

    Not only that, but are we to believe that 50% of Illinois doctors set up practices here, then flee because of a “harsh practice environment?”

    Or, is it that people come to Illinois from all over the world to BECOME doctors, and half of those go somewhere else once their studies are completed?

    If it’s the first scenario, show me. If it’s the second, then that 50% quote is razzle-dazzle bordering on dishonesty.


  2. - Alice in Wonderland - Sunday, May 29, 11 @ 3:02 pm:

    Claims are way down yet costs keep going up. Labor and Trial Lawyers face the biggest give backs in Ill workers’ comp history. Business gets more than they ever got when Republicans were in charge. Yet Republicans and business gripe that its not enough. Nothing makes sense. Just goes to prove if you say something loud enough and often enough perception becomes reality.


  3. - Yellow Dog Democrat - Sunday, May 29, 11 @ 6:12 pm:

    During debate, Senator McCarter claimed his bill — which every Republican supported — would cut worker’s comp costs by $700 million.

    According to the Dept of Insurance, the Raoul-Bradley bill saves $650 million.

    Raoul is right to berate Republicans on this point.


  4. - Moderate REpub - Sunday, May 29, 11 @ 6:58 pm:

    Yellow Dog Democrat - Sunday, May 29, 11 @ 6:12 pm:
    During debate, Senator McCarter claimed his bill — which every Republican supported — would cut worker’s comp costs by $700 million.
    According to the Dept of Insurance, the Raoul-Bradley bill saves $650 million.
    Raoul is right to berate Republicans on this point.

    YDD - Raul is the only one saying it will save $700 million. Most experts say $300 to $500. McCarter’s bill would have saved much more because of causation component. There would be a huge decline in the number of claims with causation and reductions in premiums.

    As McCann brought up lower premiums are what employers see in savings. The largest underwriter in Illinois says that a reduction in premiums will most likely be around 10% under the Raoul plan - 20% is probably not attainable but didn’t state it was impossible. McCarters plan would see a reduction of 40% or more in premiums.

    All employers care about is a reduction in premiums – no one knows what this bill will reduce premiums by. But I agree that something is better than nothing.

    As to Raoul being right to berate the Republicans - I disagree. I was there and it wasn’t about the issue. If you are a sponsor and have a problem with someone’s comments - you have the right between each speaker to rebut the testimony because you are the sponsor. Instead of taking that route Raoul waits till all the members speak and then starts yelling at everyone – and obviously doesn’t mention any previous speaker by name so they can’t speak? Give me a break – its low brow. Several of his own caucus agree. I know this because one of his colleges used the term “low brow” when speaking to several other Democrat Senators. You didn’t think that was a term I would use – did you?

    Not to mention there were only 8 “no” votes - would have been 5 if he wouldn’t have lost his S@#$. Who screams about a bill when the vote isn’t even going to be close? There are 24 Republicans and all leadership voted for it. There was no reason for his outburst at republicans because most republicans voted for the bill. Put a bad taste in many members mouths.


  5. - Yellow Dog Democrat - Sunday, May 29, 11 @ 7:21 pm:

    @moderate gop - during debate, it was mentioned repeatedly that the illinois dept of insurance estimated that the bill would reduce claims by $650 million, or 20%.

    Lawmakers from both sides of the aisle gave the dept director a standing ovation following debate, so I assume there is some faith in his numbers.


  6. - jake - Sunday, May 29, 11 @ 8:54 pm:

    House just voted down the workman’s comp. The Republicans caucused, came back and had caucused against it, and all Republicans voted “no” or “present”. Raoul was there to watch and went back to the Senate to introduce the House bill to blow the system up.


  7. - Yellow Dog Democrat - Sunday, May 29, 11 @ 9:24 pm:

    I was worried we’d have a boring end-of-session


  8. - just sayin' - Sunday, May 29, 11 @ 9:29 pm:

    Looks like the House Republicans are committed to opposing any positive progress, on anything.

    Seems like they want to see the state go down the tubes, hoping for political advantage. Hastn’t worked, won’t work, and pretty pathetic.


  9. - jake - Sunday, May 29, 11 @ 9:55 pm:

    The Republicans all said the reason they voted against was that the health providers were treated so badly in the bill. They all said they were in favor of reform, but voted against it.

    It was clearly on behalf of one special interest.


Sorry, comments for this post are now closed.


* Showcasing The Retailers Who Make Illinois Work
* Reader comments closed for the holidays
* And the winners are…
* SUBSCRIBERS ONLY - Update to previous editions
* Isabel’s afternoon roundup
* Report: Far-right Illinois billionaires may have skirted immigration rules
* Question of the day: Golden Horseshoe Awards (Updated)
* Energy Storage Brings Cheaper Electricity, Greater Reliability
* Open thread
* Isabel’s morning briefing
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Live coverage
* Selected press releases (Live updates)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............

...............


Loading


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
December 2024
November 2024
October 2024
September 2024
August 2024
July 2024
June 2024
May 2024
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller