Washington, DC – Stephen Schneider, American Insurance Association (AIA) Midwest region vice president, testified before a rare session of the Illinois House Committee of the Whole on the effects of the 2011 workers’ compensation reforms and urge for further reforms which could be undertaken. Mr. Schneider will represent a coalition of insurers which includes AIA, the Illinois Insurance Association (IIA) and the Property Casualty Insurers Association of America (PCI).
Schneider’s testimony notes that a 2014 report by the Illinois Department of Insurance ranks the state as the most competitive state in the country for workers’ compensation insurance; 333 insurers are authorized to compete for customers’ business. Further, since the 2011 reforms were enacted the National Council on Compensation Insurance (NCCI) reports that Illinois’ workers’ compensation insurance loss costs have dropped 19.3 percent and workers’ compensation insurance advisory rates have fallen a commensurate 18.1 percent.
Schneider also notes that further reforms could yet be enacted to improve the system for both employers and employees. Additional reforms should include addressing abuses associated with the practice of dispensing prescription drugs in non-pharmacy settings and examination of the present medical fee schedule, suggesting as an alternative the use of a Medicare rate-based schedule.
Source: AIA