* The 2011 workers’ compensation overhaul is beginning to show some results, Crain’s reports…
The report by the Workers Compensation Research Institute may strengthen the arguments of those Democrats who say more time is needed to determine the results of a 2011 law, which reduced medical fees and made other changes.
Medical payments have fallen nearly 15 percent, to an average of $14,513 per claim, during the 12-month period ending Sept. 30, 2013 (measured as of March 31, 2014), down from from $17,140 per claim in 2010-11, according to the institute, which is funded by the insurance industry. Illinois’ average payments are now lower than Indiana ($18,863), Wisconsin ($17,787) and Iowa ($16,051), according to the study, which compares 17 states that handle more than 60 percent of the worker’s comp cases nationwide. […]
Despite the drop, Illinois’ average medical payment per claim is still 19 percent above the median for the 17 states. The figures are for claims involving more than seven days of lost time and include bills submitted 12 months after the injury.
* And the Illinois Policy Institute’s news service makes a valid point here…
The WCRI study highlighted some costs going down but other non-hospital costs remaining higher than other states included in the study. Governor Bruce Rauner’s office says “The report highlights the need for the reforms that were included in the Governor’s workers’ compensation legislation.” Rauner’s office also says “while the 2011 reforms made progress, there is still much more work to do to make Illinois more competitive.” A statement from the ILTA says the 2011 reforms are having the intended result: lower costs to insurance companies and employers. ILTA also says further changes in workers’ compensation laws must focus on the insurance industry, not injured workers’ rights. Governor Rauner has said workers’ compensation must address causation.
Medical costs are only one part of workers’ comp. Injured workers also receive money for missed work time. And total insurance costs are still rising…
Illinois had the seventh highest worker’s compensation insurance rates in the nation as of Jan. 1, 2014, the most recent statistics available, down from the third highest in 2010, according to the Oregon Department of Consumer and Business Services, which tracks rates for all 50 states and the District of Columbia.
Even so, Illinois Democrats contend that what’s really needed here are rules clamping down on insurance company windfall profits. They have a valid point, too.
…Adding… From the governor’s office…
Illinois still has the 7th highest workers’ compensation costs in the country, and Illinois’ workers’ compensation costs are more than double the costs in Indiana. It’s clear we need major workers’ compensation reform if we want to grow manufacturing jobs in Illinois.