June 20, 2018

AIA: IL HB 2645 Would Create Burdensome and Duplicative Workers’ Comp Regulations

Washington, DC – Steve Schneider, Midwest Region Vice President for the American Insurance Association (AIA) recently issued the following statement before testifying before the Illinois House Labor and Commerce Committee against HB 2645. The legislation urges employers and insurers to file return to work and safety programs with the Illinois Workers’ Compensation Commission (IWCC) for approval.

Mr. Schneider’s statement follows:

“We urge the House Labor and Commerce Committee to oppose HB 2645.

The legislation urges employers and insurers to file their safety and return to work plans with the IWCC and wait for the ‘certification’ of these plans. Simultaneously, the Department of Insurance (DOI) is required to direct the National Council on Compensation Insurance (NCCI) to recalculate advisory premium rates for the employers and insurers who file these programs. While this sounds like a good idea, the actual implementation of this scheme will be horrendously difficult.

First, there is no documented problem necessitating the so-called voluntary certification program posed by the legislation; second, there is no coordination between plans filed with the IWCC, the DOI’s directives to the NCCI, or the NCCI’s compliance with these directives; third, the real losers from this bureaucratic circus will be insurance customers who will have to wait for these three entities to receive the info, review it, certify it, address any questions, issue directives, comply with those directives and then implement those directives.

There is no need for this plan. It is virtually impossible to implement given its structure and customers will be forced to wait for their insurance plans. We urge the committee to reject HB 2645.”

Source: AIA

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