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* Illinois Policy Institute…
A new report by the Illinois Policy Institute finds that workers’ compensation costs Illinois taxpayers $982 million each year proving that not only is it a budgetary item, but it is also a major cost driver that should be controlled and managed.
The new report analyzes workers’ compensation costs for state government, school districts, townships, special district governments, municipalities, counties, other special police and fire districts, and publicly funded construction projects.
Illinois taxpayers are forced to shoulder not only the cost of government wages, health insurance, pensions and other benefits, but also to fund workers’ compensation costs that surpass those among the other states in the region. According to the recent “2016 Oregon Workers’ Compensation Premium Rate Ranking Summary,” Illinois’ system is the most expensive in the Midwest and ties for seventh-most expensive in the nation.
The report is here.
* Greg Hinz takes a look…
That comes up to a combined $982 million, about 4 percent of payroll. The total number is almost certainly higher because the institute was able to get only partial information from the city of Chicago. (Chicago officials tell me the cost to the city alone runs about $100 million a year.)
If those costs were lowered to the average of other Midwest states, state and local governments collectively would save about $300 million a year, the institute contends. […]
“I always figured 5 percent of payroll (for workers’ comp),” says [Brad Cole, executive director of the Illinois Municipal League], the former mayor of Carbondale. “I haven’t seen their report yet, but I think their numbers are reasonably accurate. Some of the items they talk about have a considerable cost.” […]
[The Illinois AFL-CIO] underlines that the institute’s figures in part are estimates, and says that cost of workers comp for construction workers is covered by private contractors, not the government. Finally, it says that average medical costs alone here are lower than in Indiana, Wisconsin and Iowa.
On the other hand, Senate GOP Leader Christine Radogno likes it. She says in a statement, “Once again, we have evidence that Illinois’ workers compensation system is costly to not only private industry, but units of government and the taxpayers as well. Illinois is out of step. There are definitely ways to lower costs—some of which was accomplished in our 2011 reform effort which is now showing some results. But there is clearly room for additional cost-saving reforms which I continue to fight for in the legislature.”
posted by Rich Miller
Wednesday, Apr 5, 17 @ 2:12 pm
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Ok. I am for work comp reForm. Causation standards to be pecise. $300 million is quite an overreach. Maybe $150 million. When you exaggerate, you lose cred.
Comment by blue dog dem Wednesday, Apr 5, 17 @ 2:21 pm
Reform means a lot of lawyers and insiders will not get to eat lobster and steak 7 days out the week for lunch and dinner.
Comment by Rocky Rosi Wednesday, Apr 5, 17 @ 2:30 pm
There are too many phonies out there that have slipped or lifted an object and pulled a muscle that put them on workers comp for multiple years. Need resources to follow up with them at their homes and make sure they are not at a vacation resort or supplementing their income working another cash paying job.
Comment by idot pro Wednesday, Apr 5, 17 @ 2:38 pm
Rocky - It also means a lot of workers will spend years in court trying to get the costs of their work-related injury covered. And then only receive a partial award because the companies high-priced lawyers are better than the workers.
But hey, focus on the workers’ lawyers - whatever makes you feel better about your race to the bottom belief structure.
Comment by Dee Lay Wednesday, Apr 5, 17 @ 2:44 pm
Very impressive number, but let us compare that to the $700 million in interest on unpaid bills that are due to the turnaround impasse. The taxpayers are on the hook for that too, and it’s largely on the heads of Rauner and the IPI.
Comment by A Jack Wednesday, Apr 5, 17 @ 2:47 pm
Causation definitely has to be something put in place. Under the current system, if you have a degenerative medical condition that is 99% the cause, but a work “injury” aggravated that condition and is 1% of the cause, the employer now has to pay that entire claim, which easily can be $400k+. This is a problem in Illinois. I am all for protecting the small guy and making sure costs for legitimate work injuries are paid for. But there has to be some logic applied here.
Comment by Smalls Wednesday, Apr 5, 17 @ 2:51 pm
The average compared to what? Kentucky? Iowa? Indiana? Wisconsin? Missouri? Which of those states have a Chicago-sized SMSA?
Why are these people telling us that Illinois should compare itself to the little states surrounding it?
Averages?
Give me a break!
Comment by VanillaMan Wednesday, Apr 5, 17 @ 3:36 pm
blue dog dem -
Does “causation” include age?
Comment by Smitty Irving Wednesday, Apr 5, 17 @ 3:40 pm
Yup, but just because it would produce savings and increase revenue does not mean it’s a budget issue.
Comment by Ahoy! Wednesday, Apr 5, 17 @ 3:44 pm
VM
One site, http://www.insureon.com/insureonu/costs/workers-compensation , gives the Average Cost of Workers’ Compensation Insurance Per $100 In Payroll as , Illinois - $1.34, Wisconsin - $1.77, Indiana, $0.86, Kentucky - $1.16, Missouri - $1.11, Iowa - $1.64.
Comment by Bigtwich Wednesday, Apr 5, 17 @ 4:59 pm
You lost me when the first 3 words said Illinois Policy Institute!
Comment by Generic Drone Wednesday, Apr 5, 17 @ 7:08 pm
On the causation argument note that in a typical personal injury case, aggravation of a preexisting condition merits an award and often a very significant one.
Comment by Anonymous Wednesday, Apr 5, 17 @ 8:13 pm
Anonymous at 8:13 was me. Sorry.
Comment by JackD Wednesday, Apr 5, 17 @ 8:14 pm
The workers comp system for state and municipal employees is a racket - comparing state employee experience a to the entire state does nothing. Need to compare to other states. It is a right of passage for long term state employees to file frivolous claims. Sit an any bar that state/ municipal empyees hang at - and the stories are rampant of WC abuse. The entirety system is meant to favor the workers- the arbitrators are basically rubber stamps !
Comment by Lech w Wednesday, Apr 5, 17 @ 10:33 pm
Local government WC costs include coverage of firefighters and police officers. State WC cost include coverage of State Troopers. The IPI report specifically mentions PEDA & PSEBA, which cover firefighters and police officers. Do IPI, Radogno & Rauner really favor reducing compensation and medical treatment for first responders?
Comment by The Real Just Me Thursday, Apr 6, 17 @ 7:32 am