Illinois House Republicans reject workers compensation reforms
The Illinois House voted down a workers' compensation reform bill, championed by Governor Pat Quinn, due to the steep cuts in physican and hospital payments.
The current bill would cut any doctor and or hopsital fee for treating injured workers by 30%. The Illinois State Medical Society lobbied that the cut was too severe. They had agreed to a 20% cut.
The Illinois Manufacturer's Association and other Illinois business groups were pushing the Governor to enact these reforms to lighten the hit of the 46% increase in corporate income tax that became effective in January.
According to Greg Baise, president of the Illinois Manufacturers Association, the reforms would have saved Illinois business $700 million.
The call now is to "blow up" the whole workers' compensation system and have these claims handled by Illinois courts instead of the Illiinois Workers' Compensation Commission.
The proposed reforms, undoubtedly, are geared towards appeasing the Illinois business community. The cut in fees to doctors and hospitals, is the way around an injured worker choosing their own physician. If a doctor knows that they would get paid 30% less why would they agree to treat them. This forces the injured worker to accept treatment through a compay clinic or doctor.
The talk of savings to Illinois business keeps changing. Initially the savings to Illinois employers was at $300 million and now it's up to $700 million. We would like to see some justification of these numbers.
The insurance industry has been eerily silent on this whole issue. Why? Because they stand to gain the most. They are virutally unregulated in the State of Illinois when it comes to picking and choosing who they want to cover and at what price. We are skeptical of the claims that Illinois businesses would be saving $700 million because part of that would have to come through a reduction in premiums. As long as they remain unregulated in Illinois, workers compensation insurance carriers have no reason to reduce premiums.