• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • WCW HOME
  • Submit a Wire!
  • Advertising
  • Media Partners
  • About
  • Contact Us

WorkCompWire

Your Trusted Source for Workers Compensation News

Enlyte
  • Workers Compensation News
    • Workers Compensation Industry News
    • Association, Rating & Research News
    • Claims, Legal, & Compliance News
    • Legislative & Regulatory News
    • Risk Management News
    • Work Force & Human Resource News
  • Featured Articles
  • Leaders Speak
  • Editor’s Forum
  • People On The Move

AIA: Price Control Legislation is the Wrong Approach to Workers’ Comp in Illinois

January 11, 2017 - WorkCompWire

Washington, DC – Steve Schneider, Midwest region vice president for the American Insurance Association (AIA), recently issued the following statement after testifying before the Illinois House Labor and Commerce Committee on House Amendment 4 to SB 2901. Mr. Schneider represented an industry group that included: AIA, the Illinois Insurance Association (IIA), the National Association of Mutual Insurance Companies (NAMIC) and the Property and Casualty Insurers Association of America (PCI).

If enacted, SB 2901 and Amendment 4 would throw out 35 years of successful workers’ compensation insurance regulation and impose government price controls on workers’ compensation insurers. It would require insurers to submit rates to the Department of Insurance, and then wait up to thirty days before using them. This removes considerable flexibility for both insurers and their customers, Illinois businesses.

Mr. Schneider’s statement follows:

“Illinois is the single most competitive market for workers’ compensation insurance in the United States. This intense level of competition stems from the state’s current open competitive rating law that has been in effect for 35 years and which would be thrown out by Amendment 4 to SB 2901.

In addition to establishing price controls and throwing out more than three decades of successful workers’ compensation insurance regulation, SB 2901 contains provisions which essentially hide or cover-up an employer’s experience modification rating for ‘repetitive or cumulative trauma’ claims filed by workers during their first 90 days of employment. This bill represents the wrong approach to workers’ compensation reform in Illinois.

There is meaningful workers’ compensation reform that can be achieved. I urge the legislature to look at subjects such as the costs of the dispensation of prescription drugs in non-pharmacy settings. Several years ago the Illinois Workers’ Compensation Commission adopted a regulation to address the costs of so-called ‘repackaged’ pharmaceuticals dispensed by physicians, not in pharmacy settings, directly to injured workers at considerable price markups.

Insurers stand ready to work with policymakers and regulators on improving the state workers’ compensation system to ensure that injured workers receive the proper care. SB 2901 is the antithesis to that approach.”

Source: AIA

Filed Under: Industry News, Legislative & Regulatory News, Top Stories, Workers' Compensation

Primary Sidebar

Get Our Free Newsletter:

Select list(s) to subscribe to


By submitting this form, you are consenting to receive marketing emails from: WorkCompWire.com, PO Box 1114, Culver City, CA, 90232, http://www.workcompwire.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

myMatrixx

Paradigm

One Call

MTI

Follow Us on Twitter

Tweets by WorkCompWire

Workers Compensation News Topics

  • Top Stories
  • Featured Articles
  • Leaders Speak
  • Editor’s Forum
  • The RxProfessor
  • Industry News
  • Association, Rating & Research News
  • People On The Move
  • Claims, Legal, & Compliance News
  • Legislative & Regulatory News
  • Risk Management News
  • Work Force & Human Resource News
  • Workers’ Compensation

Wire Archives

Copyright WorkCompWire © 2023