The workers’ compensation reform package approved by the General Assembly should be considered a beginning, not a time for unfurling a “mission accomplished” banner.
The package is a good first step toward controlling costs. But it is only a first step.
The biggest move is a 30 percent reduction in the medical fee schedule for doctors. That still leaves Illinois with among the highest compensation rates in the country.
If passage of this bill is used as an excuse to turn away from further reform, it will hurt more than help Illinois’ competitiveness in attracting more jobs.
The “reform” still doesn’t address the “causation” standard. The Illinois State Chamber of Commerce wanted the standard raised so that the workplace would have to be the major contributing cause of an accident or injury.
Although we understand the concerns of those who think the bill didn’t go far enough, we also recognize the difficulty in getting anything approved.
The Illinois State Medical Society objected to the 30 percent cut in fees. The Illinois Trial Lawyers Association objected to several parts of the bill.
The Illinois Chamber of Commerce declared itself “neutral” on House Bill 1698 because it didn’t think it went far enough.
However, major business groups and employers, including the Illinois Manufacturers Association, Illinois Retail Merchants Association, Mitsubishi and Navistar supported the measure.
Even though this is a “baby step,” it’s a baby step forward.
In addition to cutting payments to doctors, the bill allows for creation of worker’s compensation provider networks, although an employee can opt for an out-of-network doctor, and it strengthens the utilization review process to control out-of-network medical expenses. Instead of payments for decreased earnings based on injury being paid for a lifetime, they will last until age 67 or five years after the injury, whichever is later.
New workers’ compensation arbitrators will be appointed who, for the first time, will be subject to confirmation by the Illinois Senate.
The changes are expected to save at least $500 million annually in workers’ compensation costs.
Keep in mind, the “employers” who potentially will save money from an improved workers’ compensation system aren’t just big corporations and small businesses; state and local government units — and, therefore, taxpayers — also will benefit.
Questionable claims by employees at the Menard Correctional Center helped fuel the push for workers’ compensation reform.
The goal is to ensure that those who are injured or disabled on the job are properly treated and compensated, while holding down costs related to fraud or misuse of the system. This measure is a step in the right direction to strike a proper balance in achieving those goals.
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