Capitol Fax.com - Your Illinois News Radar » Good news on workers’ comp costs?
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Good news on workers’ comp costs?

Wednesday, Jul 27, 2016

* From Sean Stott at the Laborers Union…

The organization that issues workers compensation advisory rates just released their recommendations for 2017. The NCCI says that Illinois employers should see a 12.9% cut in their WC rates next year - the 3rd largest cut in the nation - totaling more than all of our neighboring states combined.

* The https://drive.google.com/file/d/0B_inyf2A_T9KWmJzQ0ZOdDE2b0k/view?ts=579901aa“>chart…

* The Illinois Manufacturers Association disagrees…

“Nothing in the NCCI filing suggests that Illinois is actually closing the gap when it comes to the high cost of workers’ compensation relative to other states. It is abundantly clear that states like Illinois and West Virginia experiencing significant job loss in manufacturing, construction or mining jobs have also witnessed a reduction in indemnity and medical severity costs. However, the actual cost of workers’ compensation in Illinois remains among the highest in the nation.” - Greg Baise

    · Largely as the result of the continued loss of good, high-paying jobs in manufacturing and enhanced workplace safety programs, the National Council on Compensation Insurance (NCCI) offered an advisory recommendation in Illinois with a reduction.

    · It is important to recognize that the advisory 12.9 percent reduction in the overall voluntary rate is separate and distinct from insurance company premiums.

    · In 2016, only four states including Illinois, Virginia, Kentucky, and West Virginia have received their NCCI recommendations at this time. Last year, NCCI reviewed 38 states and recommended advisory decreases in 27 states (71 percent). In Illinois, NCCI recommended no change in 2015. This year’s recommended decrease follows the national trend.

    · The advisory recommendation does not include self-insured companies and excludes 40 percent of the competitive insurance market that have large deductible policies.

- Posted by Rich Miller        

18 Comments
  1. - blue dog dem - Wednesday, Jul 27, 16 @ 1:58 pm:

    What utter nonsense.


  2. - Honeybear - Wednesday, Jul 27, 16 @ 2:02 pm:

    Whatevers Baise


  3. - Downstate - Wednesday, Jul 27, 16 @ 2:02 pm:

    Was speaking with a roofing contractor on Monday that operates in both Illinois and Texas. I said that I’d always heard Illinois’ rates were 3 times higher than other state. He said, “That’s false, Illinois is 4 times higher than Texas.”


  4. - unspun - Wednesday, Jul 27, 16 @ 2:11 pm:

    So Illinois uses NCCI as its rate making agency, but when NCCI says that rates should be substantially reduced based upon Illinois’ experience, the business community always says “it’s not good enough”. These reductions are substantial, and no amount of spin can change that.


  5. - Whatever - Wednesday, Jul 27, 16 @ 2:26 pm:

    Hooray! The Turnaround Agenda™ worked! Let’s get the General Assembly back here now and pass a real, balanced budget with a Madigan Tax Hike™.
    Winnin’!


  6. - Sean Stott - Wednesday, Jul 27, 16 @ 2:46 pm:

    Greg, call me and I’ll give you the name of my chiropractor because you must be in significant pain after that twisting and contorting of fact and logic.

    How can a 12.9% rate cut NOT mean that Illinois is NOT closing the gap on WC costs? Since the 2011 law changes, IL rates have seen a 28.7% cut. Illinois is one of only 3 states that saw average medical costs (which represent 50% of all WC benefits) drop since 2010-’11.

    The 3rd largest WC rate cut in the nation does not make the Governor’s job of convincing the public and legislators that Illinois must kick more injured workers out of the system, cut injured workers’ benefits and restrict access to high quality medical care any easier, but one cannot deny that this is a huge dose of good news.


  7. - Demoralized - Wednesday, Jul 27, 16 @ 2:50 pm:

    ==12.9 percent reduction in the overall voluntary rate is separate and distinct from insurance company premiums.==

    I don’t really understand this stuff so maybe the answer is obvious, but why wouldn’t the premiums be affected? If they aren’t being affected then perhaps the insurance companies need to explain why.


  8. - My button is broke... - Wednesday, Jul 27, 16 @ 2:51 pm:

    If Illinois was on the other side of the chart and NCCI was suggesting a 12.9% rate increase, would the IMA be saying, don’t worry about it, it isn’t bad news?


  9. - Juvenal - Wednesday, Jul 27, 16 @ 2:55 pm:

    Stott:

    Sounds like Baise is inviting you to partner with him to pass legislation making the recommended rate reductions mandatory instead of only advisory.

    It’s too bad the Laborers don’t have legislation that would accomplish that and never thought about insurance reform before now.


  10. - Daniel Plainview - Wednesday, Jul 27, 16 @ 3:02 pm:

    - mining jobs -

    I’ve got news for you, Baise, those jobs aren’t going away because of workers comp.


  11. - Anonymous - Wednesday, Jul 27, 16 @ 3:06 pm:

    Sean,

    Perhaps you can separate your apples and oranges into separate piles and then evaluate each.

    NCCI has only rated 4 states this year and we’re 2nd out of 4). So while IL may be decreasing, so it every other states. And last year, while 27 of 38 states saw a DECREASE, Illinois saw no change.

    I’ll try to put in in baseball terms so you can understand better. If the Boston Red Sox are in last place in the AL East, and they win 6 games in a row but every other team in the division also wins 5 or 6 games in a row because they’re beating up on the NL Central, then the Red Sox have not closed the gap and they’re still in last place.


  12. - Anonymous - Wednesday, Jul 27, 16 @ 3:07 pm:

    Last year, 27 states did better than Illinois and saw rates decrease while IL stood still.


  13. - Anonymous - Wednesday, Jul 27, 16 @ 3:31 pm:

    Juvenal - We would welcome Mr. Baise’s support for insurance reform (which, for those who don’t know, the Laborers, the IL AFL-CIO & Trial Lawyers have long-advocated) to make sure the benefit cuts and medical fee reductions enacted in 2011 are passed on to Illinois employers.


  14. - Sean Stott - Wednesday, Jul 27, 16 @ 3:32 pm:

    Juvenal - We would welcome Mr. Baise’s support for insurance reform (which, for those who don’t know, the Laborers, the IL AFL-CIO & Trial Lawyers have long-advocated) to make sure the benefit cuts and medical fee reductions enacted in 2011 are passed on to Illinois employers.


  15. - Sean Stott - Wednesday, Jul 27, 16 @ 3:44 pm:

    Anonymous 3:06pm:

    This rate reduction is not an anomaly. They have dropped 28.7% since 2011 (As fellow Boston fan Will Hunting said, “How do like them apples?”):

    2011 -8.8%
    2012 +3.5%
    2013 -3.8%
    2014 -4.5%
    2015 -5.5%
    2016 (NCCI refused to/could not make a rate recommendation)
    2017 -12.9%

    I would say that Illinois - and the Red Sox - are rapidly moving in the right direction.


  16. - Anonymous - Wednesday, Jul 27, 16 @ 4:22 pm:

    @Sean

    So was Illinois moving in the right direction last year when there was no change in rates and 27 states saw decreases?

    Is Illinois moving in the right direction this year when NCCI has indicated that the loss of manufacturing/construction jobs are a major reason for the reduction? I

    I guess if you’re fine losing the construction jobs that employ Laborers then you’re heading in the right direction.


  17. - NoGifts - Wednesday, Jul 27, 16 @ 4:31 pm:

    I don’t think construction jobs can move to other locations.


  18. - Don't Get Me Started - Wednesday, Jul 27, 16 @ 4:34 pm:

    Since Illinois requires most employers to obtain Workers Compensation insurance (or self-insurance) a program is established to make sure all employers can obtain it, even if insurance companies don’t want to voluntarily underwrite such insurance. That program is the Assigned Risk Plan. Rates are significantly higher in the Assigned Risk Plan in Illinois than they are in the voluntary market. The rates themselves are higher, typically 20% or 25% higher than the rates for the same operations in the voluntary market. Assigned Risk policies have no Premium Discount. This can add another 10% to the cost of the policy. In the voluntary market, insurance companies commonly offer discretionary discounts ranging from 15% to 50%.
    Add it all together, and the Assigned Risk Plan policies are often twice as expensive as the same coverage in the voluntary market.


Sorry, comments for this post are now closed.


* Reader comments closed for the holiday weekend
* Sen. Connelly concedes
* Question of the day
* GOMB: State needs another $3+ billion a year to stay even
* Raoul announces transition committee
* The Democrats' vote-by-mail juggernaut
* Why the Firearms Restraining Order Act is so important
* Pension benefits are not cut in the abstract
* The way forward
* Yes, something can be done
* Monday's heroes
* *** LIVE COVERAGE ***
* 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
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
WordPress




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