SPRINGFIELD, Ill. – Local employers would receive relief from high workers compensation costs under legislation passed by state Rep. Melissa Conyears-Ervin, D-Chicago, establishing a non-profit workers’ compensation insurer as an alternative for Illinois businesses tired of paying high premiums to pad corporate profits.
“Since the General Assembly passed significant workers’ compensation reforms, injuries and costs have decreased significantly,” Conyears-Ervin said. “However, our local employers have not seen these savings yet because big insurance companies are instead using that money to pad their profits. That is why I am working to ensure insurance companies pass on these savings to our employers.”
Conyears-Ervin is working for real reforms that reforms that help small and medium-sized employers save money without hurting middle-class families. Conyears-Ervin’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.
Additionally, Conyears-Ervin supported reforms that require for-profit insurance companies to pass savings from workers’ compensation reform on to Illinois employers. Since Illinois enacted workers’ compensation reforms in 2011, costs, injuries and claims have all dropped significantly, but instead of passing on the savings to businesses, insurance companies are padding their profits. Conyears-Ervin’s House Bill 2525 gives the Department of Insurance authority to review insurance rates before they become effective and reject those it finds excessive.
“I am fighting for our small businesses and local job creators to help make our community and Illinois better for business and our working families,” Conyears-Ervin said.