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Illinois Workers’ Compensation Cost Higher Than Other Midwest States

December 9th, 2016 at 8:58 pm

Illinois workers comp attorney, Illinois injured worker laws, There have been concerns that many government officials have expressed regarding the current condition of the workers’ compensation system in Illinois. Lawmakers throughout the state, including Governor Bruce Rauner, are concerned that the existing system may allow workers who were not truly injured in the scope of their employment to collect benefits, placing a significant financial strain on the program.

As it turns out, those with concerns about the workers’ compensation system may have valid points, at least according to the newest edition of a biennial report. The Oregon Workers’ Compensation Premium Rate Ranking study has determined that, for the seventh consecutive year, Illinois ranks highest in workers’ compensation insurance rates among Midwestern states.

Looking Closely at the Numbers

Every other year, the Oregon Department of Consumer and Business Services conducts a review of workers’ compensation programs and related costs in each of the 50 plus the District of Columbia. Since 2010, Illinois has ranked above the rest of the Midwest for premium costs per dollar of payroll. For 2016, employers in Illinois spend $2.23 on workers’ compensation insurance for every $100 spent on payroll. By comparison, in neighboring Wisconsin, companies spend $2.06 per $100 in payroll, and in Missouri, employers spend $1.92 per $100 in payroll.

It would seem, perhaps, that high insurance premiums are just part of the equation for states in the Midwest. But, how can we explain the drastic difference between workers’ compensation rates in Illinois and those in Indiana, which are only $1.05 per $100 in payroll? It is hard to believe that jobs in Indiana are 112 percent safer than those in Illinois.

Lowering Costs

The numbers reported by the study present an interesting situation. Over the last decade or so, workplace injury reports have dropped by nearly a third, corresponding to an overall decrease in construction and manufacturing jobs — occupations that are at relatively high risk for on-the-job injuries. Yet, the average premiums for workers’ compensation insurance remain extremely high by local comparison.

Legislative measures were enacted in 2011 in the hopes of controlling some of the costs, but they, apparently, did not do enough. If the high premium rate continues, along with the comparatively high corporate tax rate and other regulatory costs in Illinois, companies may be inclined to look at other states as more business-friendly.

Have You Been Injured?

If you have been hurt on the job, you need to know your options for collecting workers’ compensation benefits. Contact an experienced Chicago workers’ compensation attorney to discuss your case today. Call 630-574-2288 for a free, no-obligation consultation.

 

Sources:

https://www.illinoispolicy.org/reports/illinois-remains-most-expensive-state-in-midwest-for-workers-compensation/

http://www.cbs.state.or.us/external/dir/wc_cost/files/report_summary.pdf

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