The Property Casualty Insurers Association of America (PCI) recently voiced its opposition to legislation passed in Illinois to create a state-run workers’ compensation program and regulate rates.
The Illinois state legislature passed HB 2525, which would require insurers to submit rates to the Illinois Department of Insurance, and HB 2622, which would create a state workers comp fund, the Illinois Employers Mutual Insurance Company.
“Rather than advancing real reforms to Illinois’ costly workers compensation system, today’s votes on HB 2525 and 2622 could have profound negative consequences for injured workers, the business community and all consumers in the state,” Jeffrey Junkas, assistant vice president state government relations for PCI, said.
Junkas called the changes unnecessary as Illinois already has a very competitive workers’ compensation market with over 300 companies offering coverage.
“These bills will do nothing to control costs. They do nothing to help injured workers from addiction to overprescribed, expensive drugs. They do nothing but set Illinois back in time via a 1960’s style burdensome regulatory price control scheme and force the broke state to spend significant resources to carry out the rate regulation mandate,” Junkas said.
As part of the plan to create the state fund, millions of private market dollars would be loaned from the Workers Compensation Commission Operations Fund.
“The focus of reform should be on helping injured workers get healthy and advancing changes that address underlying costs for Illinois businesses,” Junkas said. “Legislation such as HB 2525 and 2622 with debunked notions about insurance rate regulation simply shifts attention away from the real solutions needed to reform Illinois’ workers compensation system.”