Workers’ Compensation Insurance Rate Down in Illinois
Posted by: briadm
The rate used in calculating premiums for workers’ compensation insurance in Illinois has fallen by 4.5 percent. The rate was issued by the National Council on Compensation Insurance, an insurance rating agency.
Rates are issued for different categories of workers, and insurance companies calculate workers’ compensation insurance premiums by multiplying the rate by the number of workers at a particular company.
Gov. Pat Quinn’s office took credit for the drop in the insurance rate, saying that the rate has dropped 13.3 percent over three years as a result of reforms signed into law by the governor. According to the governor’s office, the rate drop has resulted in $315 million in savings for businesses in Illinois.
Quinn’s office said that the latest rate decrease could save an additional $110 million.
The reforms were sent to Gov. Quinn’s desk by lawmakers in 2011. Changes included capping the number of weeks of compensation for carpal tunnel syndrome, cutting medical fees, making it more difficult for workers who were intoxicated at the time of their injury to win claims and allowing employers to form medical networks to handle cases.
The new rate must be confirmed and approved by the Illinois Department of Insurance in a 60-day-long process. If the rate is accepted, it will take effect beginning in January. According to Deputy Director James Stephens, approximately 70 percent of companies followed the rate in 2012.