DeLuca Passes Reforms to Increase Competition, Bring Down Workers’ Compensation Costs

May 16th, 2017

SPRINGFIELD, Ill. – Local employers would receive relief from high workers compensation costs under legislation supported by state Rep. Anthony DeLuca, D-Chicago Heights, establishing a non-profit workers’ compensation insurer as an alternative for Illinois businesses searching for lower cost premiums.

 

“I agree changes must be made in order to make Illinois a more business-friendly state,” DeLuca said. “However, it shouldn’t be done by only focusing on reducing wages and stripping workers of their rights and protections in the workplace. These hardworking families deserve to be able to safely go to work and bring home a livable wage.”

 

House Bill 2622 creates a not-for-profit insurance provider that would be able to sell workers’ compensation insurance to businesses throughout the state. The Illinois Employers Mutual Insurance Company can offer the same quality insurance as for-profit companies but will be committed to delivering the best value for businesses, not turning a profit for investors. The competition will also encourage for-profit insurers to offer lower-cost options for Illinois employers. The non-profit established under this legislation is similar to state-chartered insurance companies in 20 other states, including Missouri, Kentucky, California and Texas.

 

Additionally, DeLuca supported reforms that require for-profit insurance companies to pass savings from workers’ compensation reform on to Illinois employers. Since Illinois enacted workers’ compensation reforms in 2011, costs, injuries and claims have all dropped significantly, but instead of passing on the savings to businesses, insurance companies are padding their profits. DeLuca’s House Bill 2525 gives the Department of Insurance authority to review insurance rates before they become effective and reject those it finds excessive.

 

“While I am in Springfield, I will continue working for real reforms that help employers save money without hurting Illinois families,” DeLuca said. “I am fighting to make Illinois’ economy more competitive while striving to create an environment for families to earn greater income.”

 


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