RE: Illinois HB 2525 -- Legislators Take Step Backward on Workers' Compensation Price Control legislation


Statement by
Mark Johnston
Director – State Affairs, Midwest Region
National Association of Mutual Insurance Companies

RE: Illinois HB 2525 – Legislators Take Step Backward on Workers’ Compensation Price Control legislation

“Legislation passed by the Illinois legislature would move the state back to a time when mimeograph machines, rotary phones and carbon paper were common. The bill, HB 2525, if signed by the Governor, would re-impose the unneeded and harmful rate review process on workers’ compensation insurance that the state wisely abandoned 35 years ago.

“Today over 300 companies aggressively compete for the workers’ compensation business of Illinois employers. Margins, according to the Department of Insurance, average less than 2.7 percent, which is less than half of the national average. If signed into law, HB 2525 would require insurers to submit rates to the Department of Insurance, and then wait up to 30 days before using them, removing considerable flexibility for both insurers and their customers from the marketplace and imposing significant resource demands, estimated to cost $9.6 million (2015 estimate). HB 2525 would also impose an entirely new burden on every workers’ compensation insurer and insurance policy in the marketplace by governing the premiums charged by insurers to their customers based on a vague, ill-defined standard of reasonableness.

“NAMIC calls upon Governor Rauner to veto HB 2525 and for lawmakers to embrace the medical cost and other reforms needed to ensure that Illinois employers continue to benefit from a stable and healthy workers’ compensation marketplace.”

Matt Brady
Senior Director
Media and Federal Advocacy
Communications
mbrady@namic.org
202.580.6742

Contacts

Lisa Floreancig
Senior Director of Communications

317.876.4246

  Lisa

Matt Brady
Senior Director of Advocacy Communications

202.580.6742

  Matt