 “The major workers’ compensation reforms we enacted in 2011 are protecting
workers while continuing to reduce the cost of doing business in Illinois,” Gov.
Quinn said in a statement. “Illinois’ economy is making a comeback and major
reforms like those to workers’ compensation are driving it. We are getting the
job done for our hardworking men and women and businesses across Illinois.”
The National Council on Compensation Insurance is a data analysis and research
companies that monitors workers’ compensation rates across the country. It
studied Illinois’ insurance rates and credits the drops to the Quinn-backed 2011
legislation that ushered in required rate drops from the state.
The Illinois workers’ compensation rate has dropped 19.3 points since that 2011
reform.
“The NCCI’s reported decrease is proof that workers compensation costs are
significantly lower than they were in 2011,” Chairman of the Illinois Workers
Compensation Commission Michael Latz said in a press release. “This demonstrates
that insurance companies have had to pay less money on claims since 2011 and
have enjoyed more profit.”
The NCCI said the decrease reflects a major reduction in the cost of claims paid
by insurers and provides key savings for businesses across Illinois.
The announcement follows last month’s news that the NCCI recommended an
additional rate drop of 5.5 percent in 2015. The governor’s office says the
combined savings from a lessened workers’ compensation burden will save Illinois
employers $450 million next year.
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Gov. Quinn has “made it a priority to reform workers’
compensation and to work with business owners and legislators to
make it easier to do business in Illinois,” his office said in a
statement.
Gary Burtless is a senior fellow of economic studies at the
Brookings Institute, and says lower workers’ compensation rates will
lead to job growth and economic stability.
“The more employers are required to pay into the workers’ comp
system, the less they can spend on business expansion and hiring,”
Burtless said. “In short, high rates prevents growth. Illinois
lowering its rates will be a positive for the economy.”
Greg Baise is the president and CEO of the Illinois Manufacturers
Association, and said lower workers’ compensation rates will play a
major factor in keeping Illinois businesses in Illinois.
“Many Midwestern states have more business-friendly policies than
does Illinois,” Baise said. “Hopefully by reducing the workers’ comp
rates we can begin to see more business growth and hiring in our
state again. That’s what it really needs.”
[This
article courtesy of
Watchdog.]
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