You may have already heard the important news regarding the upcoming changes to the Illinois Workers’ Compensation Act.
The Horton Group would like to provide you with some of the highlights of the reform that will directly impact many Illinois businesses. Having already passed the Senate, the bill now goes to Governor Quinn, who is expected to sign it. Once signed, many changes become effective September 1, 2011.
What are some of the crucial decisions that will impact the current Workers’ Compensation Act? What does this mean to you – the employer? Below you will find some of the key elements to the changes. Further analysis and impact of HB1698 will be provided in the near future by The Horton Group:
- Reduces the medical fee schedule by 30%.
- Allows the creation of Preferred provider organizations approved by the Department of Insurance (more details to come on this).
- Caps wage differential claims – capped at age of 67 or five years, whichever is less for claims occurring after September 1, 2011.
- Requires physicians to use the American Medical Association (AMA) standards to determine permanent partial impairment. Arbitrators will use AMA impairment ratings when determining disability.However, there is significant flexibility in the language that will allow the Commission to weigh other factors into the decisions.
- Strengthens the 2005 Utilization Review provisions.
- Intoxication defense – rebuttable presumption that the intoxication is proximate cause of an accident. No compensation shall be payable if the employee’s intoxication is the proximate cause of the employee’s accidental injury or at the time the employee incurred the accidental injury, the employee was so intoxicated, the intoxication constituted a departure from the employment.
- Reduces carpal tunnel syndrome payments from an average 40 weeks award to a maximum of 28 weeks.
- Allows for the appointment of new Workers’ Compensation arbitrators, who must be approved by the Senate. Also requires new ethical standards, training requirements, operations and personnel appointments.
- The Department of Labor shall adopt a selection process to designate two labor organizations to participate in the collective bargaining pilot program. To have a valid ADR agreement, the Workers’ Compensation insurer must agree to any contractual agreements.
In addition to the above benefit changes, there are a number of provisions that will require the insurance carrier to increase the reporting of timely payments and rates to the Department of Insurance.
As this goes to the Governor, The Horton Group will be providing further analysis of the direct impact to employers.
For additional information or questions, contact Penny Solski at The Horton Group (708.845.3374) or via e-mail at penny.solski@thehortongroup.com.