Governor to sign Workers' Compensation Reform Bill on Tuesday

As anticipated, the Chicago Tribune is reporting that Governor Quinn is set to sign the new Workers' Compensation Reform bill into law tomorrow. Feel free to read the entire report at:

http://www.chicagotribune.com/business/ct-met-quinn-workers-comp-0627-20110626,0,2075241.story

Summary of Major Changes to the New WC Act

Although the new workers' compensation reform bill has not officially been signed into law by Governor Quinn, its seems as though it is only a matter of time. Below, please find a summary of some of the major areas of change in the new Act. This is not meant to be a complete list, only a brief summary of some of the main changes.

 

1. Illinois’ medical fee schedule — the amount paid to health-care providers for workers’ comp procedures — would be cut by 30 percent, to 150 percent over what those providers are paid by Medicare for the same procedure.

2. Employers would have the opportunity to prove that intoxication was the cause of an injury and not the workplace, and employees would then have the burden of proving it was not their intoxication.

3. Employers would be allowed to refer workers to a preferred medical provider networks, under which employees still would be allowed their current two choices of doctor. If an injured worker chooses a doctor outside the network, they give up one of their choices. Hence, if an employer offers a company doctor, the employee has the option of going to the company doctor and/or one other physician of his or her choice and anyone either of those doctors refer him or her to.

4. The new Act will allow for anonymous reports of fraudulent claims and require any fraud claims be sent to the attorney generals office for determination of prosecution.

5. All of the arbiters currently on staff would be fired. Governor Quinn would be able to appoint new arbiters, subject to Senate confirmation. The Governor's office has already posted an Application Form onto the Industrial Commissions main website. Even current Arbitrators will have to apply in order to be re-appointed. This again seems to indicate his likelihood of signing the bill.

6. Under the new law, if an employee's injuries result in a loss of wages, the wage differential paid to the employee would be capped at age 67, or five years after the accident, whichever occurs later. This is significantly less money than what the previous Act allowed - which was payment of the difference for the rest of the employee's life.

It should be noted that these changes would only effect cases filed after September 1, 2011.

Governor still yet to sign new WC Bill into Law

It is said that the new WC reform bill, HB1698, has been sent to Governor Quinn for approval, but no word has come yet as to whether he has or will approve the bill. Under current law, if the governor does not veto the bill within ninety (90) days from when it hits his desk, it will become law. We expect to hear from the Governor on the bill within the near future.

Once we know whether the bill has bee approved, we will provide an update as to the exact changes, although, the basic changes and premise is set forth in bill HB1698, which can be viewed at:

http://www.ilga.gov/legislation/BillStatus.asp?DocNum=1698&GAID=11&DocTypeID=HB&SessionID=84&GA=97

If you have any questions on workers' compensation matters and/or the new reform bill in the meantime, please feel free to contact us.

WC Reform Bill - HB 1698 passed after all - on to the Governor for Approval

Amid threats to introduce and vote on a bill that would completely abolish the Workers' Compensation Act, the House voted late Tuesday to approve a reform bill and passed HB 1698 in a vote of 62 - 43 according to sources. Click on the following link for more information:

Legislation to reform Illinois' workers comp system sent to governor Business Insurance

Stay tuned to our blog for a report of the reform bill once it is fully released.