Andrade Takes On Big Insurance; Demands Savings For Small Businesses

CHICAGO– Taking on corporate insurance companies, state Rep. Jaime Andrade, D-Chicago, supported a proposal this week that demands insurers share savings from a previous workers compensation reform bill with small businesses.

“Big insurance took advantage of the 2011 reforms to maximize profits for their corporate executives,” Andrade said. “This measure will help small businesses in Illinois by making sure insurance companies can’t pocket all the benefits from the previous reform.”

Andrade supported Senate Bill 2901, which aims to assist small business owners, while protecting legitimately injured workers.  Due to the 2011 reforms, Illinois now has considerably less claims filed than other states in the region and nationwide. However, the new efficiencies and savings from the law have led to drastic increases in profits for insurance companies, rather than small businesses.

To make sure the intended savings go to small businesses, the proposal will allow the state to review insurance rates before they become effective and reject those it finds excessive. The reform brings Illinois in line with 25 other states, including Indiana, Iowa, and Wisconsin.

“This proposal is a reasonable compromise that will help small businesses across the state, while not putting injured workers at the risk of bankruptcy,” Andrade said. “I urge the governor to support this proposal and prioritize small businesses over protecting the massive profits of insurance companies.”

Senate Bill 2901 passed the house and was awaiting further action in the Senate when the 99th General Assembly adjourned.