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.”

SPRINGFIELD, Ill. – Local employers would receive relief from high workers compensation costs under legislation passed by state Rep. John D’Amico, D-Chicago, establishing a non-profit workers’ compensation insurer as an alternative for Illinois businesses tired of paying high premiums to pad corporate profits.

“The reforms that we passed in 2011 have decreased costs and injuries statewide,” D’Amico said. “Yet the majority of the resulting savings were wrestled away from small businesses by corporate insurance companies. These proposals are about leveling the playing field, so that corporate insurance can’t continue to game the system.”

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. D’Amico is working toward reforms that help small and medium-sized employers save money without unfairly harming the families of injured workers.

D’Amico voted for House Bill 2622 which 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, D’Amico 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. D’Amico voted for House Bill 2525 which gives the Department of Insurance authority to review insurance rates before they become effective and reject those it finds excessive.

“The governor’s approach unduly harms working families, so that he can give a handout to the corporate insurance industry,” D’Amico said. “The savings are there. Our proposal protects working families and makes sure that small and medium-sized businesses receive the savings from the 2011 reform.”

Both House Bill 2622 and House Bill 2525 passed the House and are awaiting further action in the Senate.

CHICAGO, Ill. – Local employers would receive relief from high workers compensation costs under legislation passed by state Rep. Theresa Mah, D-Chicago, establishing a non-profit workers’ compensation insurer as an alternative for Illinois businesses tired of paying high premiums to pad corporate profits.

“Costs have dropped along with injuries,” Mah said. “This is due to the changes made by lawmakers to workers’ compensation. It’s time these savings be passed on to local 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 Mah is working for real reforms that reforms that help small and medium-sized employers save money without hurting middle-class families.

Mah’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, Mah 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. Mah’s House Bill 2525 gives the Department of Insurance authority to review insurance rates before they become effective and reject those it finds excessive.

“This is another arm of the governor’s plan to strengthen corporate interests at the expense of working men and women,” Mah said. “I’m here to fight for the rights of those who live in my district. I will resist the initiatives that leave those people behind.”

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.