SPRINGFIELD, Ill. – Local businesses would see lower workers’ compensation costs under legislation supported by state Rep. Marty Moylan, D-Des Plaines, which creates a non-profit workers’ compensation insurance as an alternative for Illinois businesses tired of paying high premiums.
“Illinois businesses are paying near-record costs for workers’ compensation insurance, while overall costs are falling for insurance companies,” Moylan said. “I’m fed up with out-of-state insurance companies raising costs on our businesses just to pad their profits.”
Moylan’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, Moylan 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 these savings have not been passed onto businesses. Moylan’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 refuse to believe the only way we can lower costs for businesses is by slashing the rights of hard-working Illinoisans,” Moylan said. “Instead, I’m focused on finding ways to get insurance companies to pass on these savings to businesses, so we can create jobs and grow our economy.”
Visit Rep Moylan’s website
200-3S Stratton Office Building
Springfield, IL 62706
24 S. Des Plaines River Rd.
Des Plaines, IL 60016
(847) 635-8565 FAX