Illinois Seeks to Lower Workers’ Compensation Rates

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Illinois Workers Compensation LawyersAccording to Illinois Governor Pat Quinn, the Illinois Department of Insurance (DOI) has filed a request with the National Council on Compensation Insurance to lower Illinois workers’ compensation rates by 4.5 percent.

While this may sound alarming initially, this could be a very good thing for both Illinois businesses and employees. The DOI has estimated that the rate reduction could save businesses up to $110 million, which may allow many smaller businesses to offer workers’ compensation insurance to their employees. Lower costs also allow businesses to hire more employees, or put more money into expanding their operations, which could increase the number of jobs available in the state.

The state has been working on workers’ compensation reform since Governor Quinn took office. At one time, Illinois had one of the most cumbersome and expensive workers’ compensation systems in the country. Quinn’s reforms have aimed to help relieve the financial stress on businesses, while still allowing employees to receive the coverage they deserve. The newly proposed cuts will represent a 13.3 percent drop in workers’ compensation rates since the Illinois workers’ compensation reform law took effect in 2011. Current estimates show that that the reforms implemented under the new law have saved the state as much as $315 million.

If the new rates are approved, they will be implemented on January 1, 2014. Employers will need to contact their insurance companies before their 2014 renewal to determine if the new rates will have any impact on their premiums. Of course, the rates for each business will vary based on a number of different factors. Employees should not notice any difference in their current coverage or insurance costs; however, you will need to check with your employer to see how the new rates affect you to be sure.

If you have any questions about the newly proposed workers’ compensation rates and how they may affect your current claim, or if you need to file a claim for workers’ compensation, don’t go it alone. Contact a qualified Illinois workers’ compensation lawyer who can help you with your case and get you the help you need.

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