AURORA, Ill. – Local employers would receive relief from high workers compensation costs under legislation passed by state Rep. Linda Chapa LaVia, D-Aurora, establishing a non-profit workers’ compensation insurer as an alternative for Illinois businesses tired of paying high premiums to pad corporate profits.
“After the legislature passed reforms in 2011, costs dropped,” Chapa LaVia said. “However, local employers were not seeing the savings passed to them. It is time our small and medium sized businesses are given a break.”
Gov. Bruce Rauner is pushing to further pad corporate profits by demanding changes to workers compensation that will jeopardize the economic security of workers hurt on the job through no fault of their own. But Chapa LaVia is working for real reforms that help small and medium-sized employers save money without hurting middle-class families.
Chapa LaVia’s House Bill 2622 creates a not-for-profit insurance provider that would be able to sell workers’ compensation insurance to businesses throughout the state. The Illinois Employers Mutual Insurance Company can offer the same quality insurance as for-profit companies, but will be committed to delivering the best value for businesses, not turning a profit for investors. The competition will also encourage for-profit insurers to offer lower-cost options for Illinois employers. The non-profit established under this legislation is similar to state-chartered insurance companies in 20 other states, including Missouri, Kentucky, California and Texas.
“It is clear that the governor is more concerned with padding corporate pockets than working families in Illinois,” Chapa LaVia said. “I am ready and willing to fight the agenda he is promoting that only seeks to help billionaires and big corporations.”