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An outline emerges, but is there a willingness to move forward?

Tuesday, Feb 23, 2016 - Posted by Rich Miller

* AP

The top Republican in the Illinois House says there is room to compromise with Democrats on the conservative agenda Gov. Bruce Rauner Is pushing.

Jim Durkin is a Republican from Western Springs. On Monday, he told a meeting of the City Club in Chicago that he wants Democrats who control the General Assembly to negotiate “with open minds” on a balanced budget. […]

Durkin says there are steps within a workers comp reform package that could be agreed upon, such as adopting American Medical Association guidelines for compensating worker injury.

* More

“In my caucus, I believe that workers’ comp is extremely important, extremely important,” said Durkin, R-Western Springs.

“And I’m of the belief, after my discussions with the (House) speaker and the (Senate) president, over the months, that is an area where we can find some common ground.”

“If we‘re going to get through the budget … that’s one of the things we’re going to have to address. It has to be part of the plan, it has to be part of the big picture,” Durkin said in a presentation to the City Club of Chicago.

Durkin also said the GOP doesn’t expect Democratic support for big changes in workers’ compensation “causation,” which refers to whether an injury actually occurred at work and to what degree the workplace is responsible.

Still, he said, “there are many other issues we can deal with on workers’ comp,” citing as examples the implementation of American Medical Association recommendations and changes in payment-for-loss schedules.

* But

“We passed legislation last year that focuses on the insurance industry, which appears to be a blockade point,” said Madigan spokesman Steve Brown.

“The important thing is there have been independent studies that say the cost of workers’ comp has come down dramatically since the 2011 reforms (but) the insurance companies aren’t passing it along,” said Brown.

“We have a bill that was passed that could focus on the insurance companies (and) get the money to the employers, but the governor is focused on taking wages away from employees,” Brown said.

Brown referenced House Bill 1287, which passed the House last June by a vote of 63 to 39. While Democrats said it was a substantial measure and an olive branch to the governor, Republicans dismissed it as an insincere gesture and falling well short of the changes they want. The bill remains in the Senate.

* OK, just combine the two and be done with it. Or, maybe roll back all or part of this statute

A 2005 bill that raised payments to workers who suffered permanent partial disabilities on the job [by 7.5 percent] caused workers’ compensation insurance rates in Illinois to soar. Miller said a repeal of that law could break the budget stalemate and satisfy both Rauner and Madigan, who has argued that Rauner’s agenda for workers’ comp will send injured workers to emergency rooms for treatment and force them onto welfare rolls:

    “‘If we get this, workers’ comp is done’ [the governor’s people have told me]. Now, rolling back a 7.5 percent benefit increase is not going to put one person on welfare or send one person to the emergency room. That is a doable, possible fix.”

* The question becomes does either side really want to do a deal? I think Durkin is indicating that he’s willing to move forward on something. Brown has laid out what his boss wants. A governor interested in advancing his cause would immediately see this as a prime opportunity for progress.

Put the Speaker on the spot by agreeing to his demand. There’s no better way to test whether Madigan is more interested in compromise or gridlock.

* And, frankly, the same can be said of Rauner. I’m still of the mind that Rauner wants to do a deal. I think that’s supported by what he told the bigshots at GE last year when the company wanted to move its HQ to Chicago, but were worried about governmental instability. Rauner asked for more time because he (for whatever reason) thought he was close to ending the impasse. I don’t think he would’ve told the company execs that if he wanted this thing to go on indefinitely. Maybe I’m wrong, but I still believe he wants to move the state forward. It’s just that he absolutely must find another way to do it.

       

45 Comments
  1. - 360 Degree TurnAround - Tuesday, Feb 23, 16 @ 9:31 am:

    Madigan/Brown hits it on the head. Why aren’t insurance companies sharing the money with employers? employees gave back benefits in 2011 - employers are afraid to ask insurance companies for their money.


  2. - DHSJim - Tuesday, Feb 23, 16 @ 9:32 am:

    I believe he wants to move te State forward too - with his anti-union, pro privatization demands. This for him is true progress. Anything else isn’t.


  3. - 360 Degree TurnAround - Tuesday, Feb 23, 16 @ 9:33 am:

    And that would be approximately $1 billion in savings for employers. The business and insurance community are too intermingled.


  4. - RNUG - Tuesday, Feb 23, 16 @ 9:33 am:

    Work comp has been a spot where D & R could compromise if people are willing to bend a bit. There is room to draft a bill both chambers will pass. I’m not as optimistic as Rich; the wild card will still be whether Rauner will sign what gets to his desk …


  5. - 360 Degree TurnAround - Tuesday, Feb 23, 16 @ 9:34 am:

    The workers’ comp argument is all political.


  6. - out of touch - Tuesday, Feb 23, 16 @ 9:36 am:

    So the solution on work comp is to use AMA guidelines? AMA guidelines are not intended to be used for this purpose–it says so WITHIN the AMA guidelines. It’s understandable that leaders are starved for movement or action, but that doesn’t mean that ANY action will do.


  7. - Anon221 - Tuesday, Feb 23, 16 @ 9:37 am:

    RNUG- Well, if Rauner won’t sign, and the D’s and R’s think the bill is worthwhile in reducing workers’ comp costs, then work together and override. They did it on the heroin bill. It can be done, there just has to be enough backbones to do it.


  8. - phocion - Tuesday, Feb 23, 16 @ 9:40 am:

    Madigan/Brown position doesn’t hold water. Self-insured firms are still seeing very high workers comp costs. Painting the insurance company as an imaginary boogeyman is an easy way out of getting real reform in the system.


  9. - RNUG - Tuesday, Feb 23, 16 @ 9:41 am:

    - Anon221 -

    Agreed, but it will be harder to put the override votes together


  10. - Anon221 - Tuesday, Feb 23, 16 @ 9:43 am:

    RNUG- True, but at some point in time in the rest of this first term saga, it is going to have to be done. In the meantime, things like this just keep happening- http://chicago.suntimes.com/chicago-politics/7/71/1345650/brown-autistic-man-faces-ouster-wisconsin-group-home-illinois-budget-fight


  11. - Norseman - Tuesday, Feb 23, 16 @ 9:44 am:

    Is this an outline or some musings by one leader? This could have been and should have been an outline last year, but Rauner’s attack mode and Madigan’s massive retaliatory response has led us to a very dark place. Only a leader can help us find the way out. Is Durkin willing to take on this role in the face of Rauner’s ego and money? I wish, but I have my doubts.


  12. - Rich Miller - Tuesday, Feb 23, 16 @ 9:49 am:

    === Self-insured firms are still seeing very high===

    Then granting Madigan’s wish is no big deal.

    Look, instead of constantly looking for ways NOT to do things, how about looking for ways TO do things.

    This ain’t brain surgery here.


  13. - Anonymous - Tuesday, Feb 23, 16 @ 9:49 am:

    This could signal a better approach.
    Both sides could benefit from surrogate representatives to talk to each other and find things to give to the other side in exchange for some agreed legislation and a budget.
    That has been used in all sorts of negotiations.
    And it fits this forum because it has roots in the Godfather.
    Maybe this is such a move?


  14. - 360 Degree TurnAround - Tuesday, Feb 23, 16 @ 9:56 am:

    Self insured plans don’t have to open their books, nor do they share their information.


  15. - 360 Degree TurnAround - Tuesday, Feb 23, 16 @ 9:57 am:

    Maybe we could look at a major dose of insurance reform to save employers some money, then labor could come back with some additional savings.


  16. - Earnest - Tuesday, Feb 23, 16 @ 9:58 am:

    >but I still believe he wants to move the state forward

    >Work comp has been a spot where D & R could compromise if people are willing to bend a bit.

    >It can be done, there just has to be enough backbones to do it.

    I’m pessimistic. I think the squeezing of the beast is Rauner’s intention. With a lot of money against in both D and R primaries and ultimately in a general, Madigan won’t be inclined to reach out too far to compromise. I hope I’m wrong, Soon. This is about as fertile a ground as there will be in terms of each side moving towards a compromise.


  17. - Moe Berg - Tuesday, Feb 23, 16 @ 9:59 am:

    With great respect, Rich, I think you are like most of us, desperately grasping at straws to avoid facing what each day seems like the stark reality: a governor that is so certain of his course and the need to destroy unions at all costs that he will accept nothing less than the Dems’ complete capitulation. The evisceration of Lutheran Social Services and Leader Radogno’s cheerful explanation that some shakeout was necessary was a pivotal moment. Look at the terrible game he’s playing with CPS - 90% of whose students live in poverty.

    You’ve talked to people close to Rauner. I have, too. He knows he’s smarter than everyone else, including his staff, and will not stand to be contradicted, challenged or told when he’s wrong. We had no idea who we were electing, but we’re sure finding out now.


  18. - UIC Guy - Tuesday, Feb 23, 16 @ 10:02 am:

    So workman’s comp would be one side of the deal. (It’s always seemed like a likely give.) What would be on the other? A budget, presumably, with new revenue, presumably—and who has to vote for the new revenue (aka a tax increase)? And does BVR have to sign the bill raising taxes?

    A story about a possible compromise is much more plausible if it includes both sides of a possible deal!


  19. - Frenchie Mendoza - Tuesday, Feb 23, 16 @ 10:03 am:

    Once a compromise is struck — on anything — and the rhetoric turns conciliatory and — perhaps — hopeful — the base gets irked. Rauner’s base wants conflict. The base *wants* folks to get hurt. The *base* wants punishment.

    Real, quantifiable pain is the metric of “reform” — not the actual reform itself.


  20. - wordslinger - Tuesday, Feb 23, 16 @ 10:04 am:

    I can imagine Durkin and some House GOPers want a way out.

    I’m sure many are getting an earful in their districts from businesses and non-profits with state contracts that are not getting paid, from universities and community colleges that are being starved.

    Whether they have the independent juice to step up is the question.

    Ten House GOPers could run the table as a bloc if they staked out independent positions.

    We saw earlier how a threatened revolt by some House GOPers forced the governor to release non-GRF money to local governments.

    Times-a-wastin.


  21. - CrazyHorse - Tuesday, Feb 23, 16 @ 10:05 am:

    Here is a perspective (seems to be lock-step with Rauner/Durkin) from an attorney who represents companies against injured workers

    http://www.rusinlaw.com/2014/05/ppd-evaluations-iwca-application-ama-guidelines/#Amendments

    It’s a fairly detailed piece where he goes into the whole AMA impairment guideline argument. Note the difference in AMA guideline vs. PPD (Permanent Partial Disability) awards.

    On the surface, it appears that injured workers would lose approximately half of their PPD awards if the strict AMA impairment rating is passed. Ouch.


  22. - Langhorne - Tuesday, Feb 23, 16 @ 10:07 am:

    Legislators getting a deal done on WC would be a big positive step for the GA, and help w public perception. Rauner should be a party to it, so their is assurance he will sign it. But no one trusts rauner. He can agree to it, but there is always a fera he will come up w an excuse for an amendatory or total veto.

    But you gotta start somewhere, charlie brown. If rauner pulls a doublecross, repubs have justification to back away from him


  23. - Oswego Willy - Tuesday, Feb 23, 16 @ 10:08 am:

    Until the GOP GA is willing to tell the governor “here’s your 60 and 30, take your WC win”…

    … until that happens, I don’t know if this can be done.

    I’d seriously ask - Louis G Atsaves - (zero snark) to help the GOP GA and the governor stake out a feasible win that can pass both chambers and get signed. A clean signature.

    The best “out” is WC. Everyone seems to think so, so prove yourselves right.


  24. - Grandson of Man - Tuesday, Feb 23, 16 @ 10:11 am:

    I too am holding out hope for some kind of a deal, something that can put us on a path to progress, but then again I am a naive optimist.

    I would like to see progress that will even lead to labor peace, but I realize I’m probably hoping for far too much.

    Who wants to live in this constant state of political warfare? Wouldn’t we all just want to get on with the rest of our lives instead of planning for battles and fighting?


  25. - forwhatitsworth - Tuesday, Feb 23, 16 @ 10:15 am:

    What do the Democrats gain in supporting any of Rauner’s proposed reforms? … The privilege of voting for a tax increase?


  26. - Dan Johnson - Tuesday, Feb 23, 16 @ 10:17 am:

    It would be great if Republicans were open to regulating insurance carriers to lower their premium prices. That’s what benefits 99% of all businesses (those that do not self-insure). Durkin’s comments do provide hope. His members (especially Downstate) must be feeling the strain in a way the Governor just isn’t. I hope the Governor listens to Durkin.


  27. - A guy - Tuesday, Feb 23, 16 @ 10:35 am:

    Let’s hope this is a crack in the dam. I agree with Rich and RNUG. If you get a largely bipartisan WC bill in front of the Governor, I think he’d sign it….immediately.


  28. - Frenchie Mendoza - Tuesday, Feb 23, 16 @ 10:52 am:

    My prediction: no budget until Madigan has a working supermajority. If that’s not the case come November, then there’s no budget — period.


  29. - wordslinger - Tuesday, Feb 23, 16 @ 10:54 am:

    –I agree with Rich and RNUG. If you get a largely bipartisan WC bill in front of the Governor, I think he’d sign it….immediately.–

    They said that?


  30. - Down the Middle - Tuesday, Feb 23, 16 @ 10:54 am:

    Did Leader Durkin make any reference to medical fee schedule reductions? In 2011, House Republicans were nearly all opposed to any deal where docs took a hit. Without changes in the medical fee schedules that put the state out of the top range in costs, it will be hard to realize any substantial savings.


  31. - A guy - Tuesday, Feb 23, 16 @ 11:06 am:

    === wordslinger - Tuesday, Feb 23, 16 @ 10:54 am:

    –I agree with Rich and RNUG. If you get a largely bipartisan WC bill in front of the Governor, I think he’d sign it….immediately.–

    They said that?===

    Ask them smartie pants. But just for you I’ll diagram the short paragraph so as not to make you strain to understand what periods are.

    Let’s hope this is a crack in the dam.//

    I agree with Rich and RNUG. //

    If you get a largely bipartisan WC bill in front of the Governor, I think he’d sign it….immediately.
    ###


  32. - Harry - Tuesday, Feb 23, 16 @ 11:13 am:

    Rauner has a lot of other things in his Turnaround Agenda, besides Workers’ Comp. Maybe a WC compromise is possible, but that hardly means it would be enough to satisfy Rauner on the whole budget front–in fact, from what he has been saying and doing, I would be surprised if it was.


  33. - Chicagonk - Tuesday, Feb 23, 16 @ 11:17 am:

    Dealing with workers comp everyday, the issue is not the medical cost component, but the indemnity (lost time) component. As a percentage of payout, the indemnity component in Illinois is 51% compared to 41% nationally. When indemnity is paid out, the average in Illinois is $31,000 per case compared to $23,000 per case nationally. Indiana is at the other end in that their average indemnity per case is $11,000. When permanent partial disability is paid out, Illinois averages $50,000 per claim compared to $35,000 nationwide and $19,000 in Indiana.

    I do not think we should be like Indiana, but if there is room for reform, it should be on improving return-to-work initiatives and adjusting the permanent partial disability schedule.


  34. - Mama - Tuesday, Feb 23, 16 @ 11:29 am:

    I think the four tops (minus the governor) need to work with a mediator to find the do-able common ground. Then have the mediator present the do-able to the governor’s staff to see if the governor would sign it.


  35. - RNUG - Tuesday, Feb 23, 16 @ 11:30 am:

    == I agree with Rich and RNUG. ==

    As I said at 9:33am, I think there is a deal the GA would pass. I’m not as sure as Rich that Rauner would sign it.

    My exact words were: “I’m not as optimistic as Rich; the wild card will still be whether Rauner will sign what gets to his desk …”


  36. - Anonymous - Tuesday, Feb 23, 16 @ 11:32 am:

    Now is a good time for Rauner to put Madigan on the spot. Let’s see if the man who will not even compromise with his own party on things like pension reform will compromise with the other party on anything at all.

    Or if he is a relic impeding progress and change of any sort.


  37. - Mama - Tuesday, Feb 23, 16 @ 11:34 am:

    Healthcare is also being starved. How can that problem be resolved without a budget for FY2016?


  38. - annonin' - Tuesday, Feb 23, 16 @ 11:38 am:

    Capt Fax loves to point to the ‘05 increase. Wonderin’ what a 11 year-old increase is worth today.
    Self insureds are asked to provide more data in the bill Brown mentioned That would be fun
    AND as Smartest Guy in the Room — Dwight Kay — always mentions insurers tend to bundle various coverages so a biz honcho can cheap car/life/art works coverage while seein’ nothin’ on WC thus allowin’ them to whine.
    Perhaps Durkie will want to work this into his outline


  39. - Mama - Tuesday, Feb 23, 16 @ 11:39 am:

    “I think Durkin is indicating that he’s willing to move forward on something. Brown has laid out what his boss wants. A governor interested in advancing his cause would immediately see this as a prime opportunity for progress.”

    I think the four tops can find a common ground to implement & pass a WC bill. The big question is, what will the governor do if it isn’t everything he wants?


  40. - Rich Miller - Tuesday, Feb 23, 16 @ 11:41 am:

    ===Capt Fax loves to point to the ‘05 increase. Wonderin’ what a 11 year-old increase is worth today.===

    1) Illinois shot up from the middle of the pack in price to the top few almost right away.

    2) 7.5 percent is worth 7.5 percent today.


  41. - Mama - Tuesday, Feb 23, 16 @ 11:43 am:

    ==It would be great if Republicans were open to regulating insurance carriers to lower their premium prices. That’s what benefits 99% of all businesses (those that do not self-insure). ==

    A deal like this would be great for the voters too!


  42. - walker - Tuesday, Feb 23, 16 @ 1:03 pm:

    This has been an obvious first step for a year now. And Durkin first feels free to say it now? Maybe the straws will float us, right?


  43. - steve schnorf - Tuesday, Feb 23, 16 @ 2:44 pm:

    I kinda think that if workers comp was the key to the Gordian Knot it would have been untied a long time ago. Maybe I’m wrong.


  44. - Union Leader - Tuesday, Feb 23, 16 @ 3:53 pm:

    First, Rich….
    Look, instead of constantly looking for ways NOT to do things, how about looking for ways TO do things.

    This ain’t brain surgery here. –BRAVO!!!!

    Moe Berg…
    You’ve talked to people close to Rauner. I have, too. He knows he’s smarter than everyone else, including his staff, and will not stand to be contradicted, challenged or told when he’s wrong. We had no idea who we were electing, but we’re sure finding out now.

    ELECTIONS HAVE CONSEQUENCES! Shame on all of those union voters who chose Rauner over Quinn.


  45. - Norseman - Tuesday, Feb 23, 16 @ 4:02 pm:

    Well put Steve Schnorf


Sorry, comments for this post are now closed.


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