Washington, DC – Stephen Schneider, Midwest region vice president for the American Insurance Association (AIA), recently issued the following statement in response to the Illinois Policy Institute’s report Fixing Illinois’ Outdated Workers’ Compensation System. The report takes the wrong approach to reforming Illinois’s workers’ compensation system by advocating that employers could control cost if they opt-out of the system. In testimony last year before the Illinois House and Senate, AIA has advocated for meaningful reforms that benefit both employees and the employer community.
Mr. Schneider said:
“AIA was disappointed by the Illinois Policy Institute’s report. Opt-out represents the wrong approach to reforming the state’s workers’ compensation system. It creates a separate and unequal system of work injury benefits, an un-level playing field among employers who will be incented to opt-out to minimize their work injury costs.
Instead, AIA proposed meaningful reforms that policymakers can enact that will improve Illinois’ workers’ compensation system, reduce costs and not harm the benefits to workers injured on the job. These reforms 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.
We look forward to working with Governor Bruce Rauner and legislators in advocating for these measures and others, to better serve Illinois employees and the employer community.”