Workers’ Compensation Reform Bill Passed
On May 26, 2017, representatives of the State of Illinois fulfilled their promise of scrutinizing the current workers’ compensation system as ordered by Governor Bruce Rauner. In the session, Majority Democrats endorsed the proposal requiring companies that write workers’ compensation insurance to obtain the approval of the state for their rates. Furthermore, the legislators proposed the creation of a non-profit company overseen by the government to write competitive policies.
The current governor has demanded workers’ comp reform since he was a gubernatorial candidate and has pushed for changes as soon as he held office. In fact, the budget impasse then was counting on the changes that were to be made in the workers’ compensation reform. This means that the reform was crucial not only to workers’ compensation but also to the passing of the annual budget.
Highest Workers’ Compensation Rates in the Country
Businesses in Illinois have paid some of the highest workers’ compensation rates in the country. The governor and many Republicans claim that this is caused by the limited controls on abuse by workers. However, Democrats claim that insurance companies have been keeping the profits for themselves after a reform measure was passed six years ago. Thus, the bill that the Democrats passed establishes government oversight on insurance companies and the manner in which whey charge businesses.
With sources from:
Illinois Lawmakers Pass Workers’ Compensation Measures
Democratic Lawmakers Pass Workers’ Comp Bill
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