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A quick look at one of the governor’s “grand bargain” demands

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Illinois

* The Sun-Times writes an editorial aimed at House Speaker Michael Madigan…

Delivering his annual budget address Wednesday, Rauner ran down a list of things he’d like to see in the grand bargain. A number of those items, such as term limits on legislative leaders — that’s aimed at you, Mike — and making permanent a tax credit for research and development, already are in the mix. Other items, such as making a property tax freeze permanent and excluding food and drugs from an expanded sales tax, are not.

Only time will tell whether those are hard or soft demands by the governor, and whether they are politically doable or deal-breakers. The governor’s next steps will reveal just how amenable to compromise he really is.

But now the Senate could use a similar signal from you, too, Mike. Senators on both sides of the aisle will be asked to take difficult votes. That’s easier to do if they know they’re not taking a risk for nothing, if they know this grand bargain stands even a chance in the House and with the governor.

Would this be a win for Rauner? Sort of. He would get a few of the reforms he has insisted on. But only after 20 months of losing really badly.

If you were out to make point, Mike, you have.

Now let’s do what’s best for Illinois.

If the governor expects the Senate and the House to pass all of his “grand bargain” demands as-is, the whole effort is probably dead. Let’s hope he’s flexible.

* In the meantime, let’s go back to yesterday’s budget speech…

We’re asking for a worker’s compensation system that matches Massachusetts.

As we’ve discussed before, Massachusetts is a “causation” system and the Democratic Party here does not love that idea.

The Massachusetts Division of Insurance told Illinois’ Legislative Research Unit in 2015 that, in addition to its significant statutory reforms, “a changing mix of industries” in the state with “fewer high-risk occupations” as well as a statewide health care cost containment program contributed to that state’s lower costs. Some of that couldn’t easily happen here, but they do appear to have a very smart and effective medical cost-containment strategy.

* However, the Massachusetts Division of Insurance also told LRU that it is tasked with approving workers’ comp insurance rate changes. As of 2015, those rates had declined nearly 25 percent since 2001, when rates were increased by a single percentage point.

Speaker Madigan has been strenuously arguing for state control over workers’ comp insurance rates here because he believes they are artificially high. So, maybe it’s time to make a counter-offer.

* More editorials…

* SJ-R: Lawmakers need to agree on more than the need to work together

* Daily Herald: The governor’s call for ‘political will’ on Illinois budget crisis

* Tribune: Illinois senators, fly the plane

posted by Rich Miller
Thursday, Feb 16, 17 @ 1:17 pm

Comments

It should also be noted that while Massachusetts has a major cause standard for pre-existing conditions, it has been interpreted that a work injury that only contributes 20% towards an injury can still be compensable under Massachusetts law. Which is far different than the 50% threshold that has often been demanded in this debate.

Comment by Juice Thursday, Feb 16, 17 @ 1:29 pm
“Effective medical cost-containment strategy” means paying on average lower than Medicare reimbursement rates. It’s easy to see why that is so effective. Doctors and hospitals literally cannot afford to treat injured workers for those rates and therefore don’t. No medical treatment,no medical treatment costs. Voila! Costs contained! That was easy! Except if you’re the injured worker.

Comment by The Real Just Me Thursday, Feb 16, 17 @ 1:32 pm
To summarize the Massachusetts report, medical cost payout tied to Medicare rates and frozen for the last 8 years, quick and stringent review of every claim that apparently resulted in quicker return to work, and complete rate-setting regulation. The only thing that wasn’t very clear was if the quality of medical care was equal; guess we have to presume it is, since return to work was earlier.

If Illinois implemented all those factors, even without a causation standard, the costs here should go down. But that quick review will, most likely, take more staff.

Comment by RNUG Thursday, Feb 16, 17 @ 1:32 pm
To say that Rauner has been losing for 20 months is just not true. The Governor, as well as all of the media, have been blaming the Speaker this whole time.
I get they want a deal but stop letting Rauner be a 20 month victim who’s been losing. He’s been doing exactly what he wants. Capitulation and destruction.

Comment by Dupage Bard Thursday, Feb 16, 17 @ 1:53 pm
One of the foundational trade-offs in the workers’ compensation system is that causation need not be proven. In exchange for that, there are caps on damages. If the Governor, IMA, etc., want to remove the caps, maybe more people would be willing to require causation be proven…

Comment by chi Thursday, Feb 16, 17 @ 2:25 pm
RNUG, don’t know if your “presumption” can necessarily be drawn. The opposite “presumption” could be just as likely, that is, poor quality medical treatment results in quicker return to work because poor quality medical providers fail to diagnose serious injuries properly. And there is some argument to be made that lower than Medicare reimbursement rates result in poor or at least “less high” quality medical treatment. So it could be that poor quality medical treatment is actually driving “quicker return to work” in MA.

Comment by The Real Just Me Thursday, Feb 16, 17 @ 2:28 pm
“Now let’s do what’s best for Illinois.”

Unfortunately, it seems as if the Speaker’s major premise has always been “What is good for Madigan is good for Illinois. “

Comment by Anonymous Thursday, Feb 16, 17 @ 2:30 pm
Once again, insurance issues are used as a smokescreen. “Excessive rates” allegations is one of those shiny objects designed to distract. If you’re looking for an industry with high profits, you’ll need to look somewhere other than the workers compensation business.

Comment by 39th Ward Thursday, Feb 16, 17 @ 2:33 pm
Massachusetts has causation. Radogno says causation is off the table, then Rauner says let’s be like Massachusetts. What was that you said about Charlie Brown and Lucy with the football?

Comment by c'mon, man Thursday, Feb 16, 17 @ 2:35 pm
“Now let’s do what’s best for Illinois.”

Please explain what is best for Illinois and why.

Comment by My New Handle Thursday, Feb 16, 17 @ 2:40 pm
–Would this be a win for Rauner? Sort of. He would get a few of the reforms he has insisted on. But only after 20 months of losing really badly.–

Fundamental misreading of the last two years.

Rauner got plenty of what he wanted with squeeze-the-beast. It was Social Darwinism that only a Randian true believer could want or stomach.

Those that didn’t make it ain’t coming back. Those that did will have to survive on much less, by necessity of the exploding debt.

Governor is by far the most powerful office in the state. If Rauner didn’t want that destruction to happen, it would not have.

You don’t take the wrecking ball to the social services infrastructure and run up billions in new debt for the “economic benefits” of term limits. That’s screwball stuff.

Madigan tried and failed dozens of times to override Rauner vetoes and got nothing to show for it. The myth of running the state out of the House Speaker’s chair is also screwball stuff.

Comment by wordslinger Thursday, Feb 16, 17 @ 3:07 pm
The myth of running the state out of the Speaker’s chair screwball stuff.

1.Name one law that was passed that made it through the rules committee over the Speaker’s objection.

2.Name one budget that was signed over the Speaker’s objection

3.Name one penny in the 60% of spending that is mandated by statute that can be reduced without the Speaker’s consent

Comment by Lucky Pierre Thursday, Feb 16, 17 @ 3:23 pm
So if we want to be like Mass lets go to the same tax rate they have pers income 5.2, sales 6.25 and corp 8%.

Comment by So tired of political hacks Thursday, Feb 16, 17 @ 4:01 pm
Since our workers’ comp system is so bad for employers, perhaps we should eliminate it altogether.

Comment by Alton Giant Thursday, Feb 16, 17 @ 4:06 pm
A rethink on causation is critical for making Illinois more competetive in the manufacturing world. It will help an ailing steel industry in this state.

Comment by Blue dog dem Thursday, Feb 16, 17 @ 4:10 pm
Please stop the nonsense. Of course causation must be proven. Of course IL is a “causation” state. Please read Section 1(d) of the IL WC Act: “To obtain compensation under the Act, an employee bears the burden of showing, by a preponderance of the evidence, that he or she has sustained accidental injuries arising out of and in the course of the employment.” The IL WC Act. Employee’s burden. Preponderance of the evidence. So NOT no causation.

Comment by The Real Just Me Thursday, Feb 16, 17 @ 4:51 pm