Hoffman Leads Hearing Examining Workers’ Compensation Reform Proposals

SPRINGFIELD, Ill. –To examine the effects of various proposals to workers’ compensation in Illinois, state Rep. Jay Hoffman (D-Swansea) chaired a Committee of the Whole General Assembly to work toward a compromise on workers’ compensation reform. The hearing featured testimony from experts in the manufacturing, insurance, and medical field, as well as workers that have been injured on the job in Illinois.

“In 2011 we passed reforms to workers’ compensation that have led to decreased costs and injuries statewide, yet the savings from these reforms have not been realized by Illinois’ small and medium-sized businesses,” Hoffman said. “The problem is, that corporate insurance companies wrestled all the savings from our proposal to pad their already immense profits. The savings are there, we just need to level the playing field.”

While some proposals would continue to pad corporate insurance profits by demanding changes that will jeopardize the economic security of workers hurt on the job through no fault of their own, Hoffman is pushing a measure that ensures Illinois businesses will see the benefits of the 2011 reform by requiring insurance companies to pass savings on to local employers–drastically reducing their costs. Hoffman’s legislation, House Bill 2525, also takes steps to crack down on fraud and abuse, and includes additional measures to reduce costs without jeopardizing the health or economic security of workers.

“Stripping away benefits and healthcare for injured workers, all to continue to subsidize the profits of huge corporate insurance companies that have been gaming the system is not the right approach,” Hoffman said. “We need additional reform to help businesses compete. My proposal builds on the 2011 reform by ensuring that the savings from that measure are passed on to Illinois businesses, while continuing to eliminate fraud and abuse.”