SPRINGFIELD, Ill. – Local employers would receive relief from high workers compensation costs under legislation passed by state Rep. Deb Conroy, D-Villa Park, establishing a non-profit workers’ compensation insurer as an alternative for Illinois businesses tired of paying high premiums to pad corporate profits.
“Local businesses need and deserve relief from high insurance premiums,” Conroy said. “Since the General Assembly passed worker’s compensation reforms, injuries and costs have decreased. However, large insurance companies have used this to pad their profits rather than pass those savings on to employers.”
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 Conroy is working for real reforms that reforms that help small and medium-sized employers save money without hurting middle-class families.
Conroy’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, Conroy 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. Conroy’s House Bill 2525 gives the Department of Insurance authority to review insurance rates before they become effective and reject those it finds excessive.
“It is time that our local businesses get the insurance rate break they are owed,” Conroy said. “I will continue to fight to ensure large insurance companies cannot starve our local businesses of these savings so they can profit off their back.”