Workers’ Compensation in Illinois
In 2011, at the strong request of Business and Insurance Companies a Workers’ Compensation “Reform” package was signed into law, aimed at lowering costs for employers in Illinois. Instead, the insurance industry has pocketed enormous profits and has not passed any savings along to employers. Any further changes in laws should instead look to promote insurance premium transparency and oversight – not further sacrifices by injured workers.
- The National Council on Compensation Insurance (NCCI – an insurance industry rate making agency which provides workers’ compensation data) has issued its workers’ compensation advisory rates for 2019. It states that Illinois employers should see a 8.5 percent cut in their workers’ compensation insurance premiums in 2019 – this is the sixth consecutive rate reduction that has been recommended.1
- Since the 2011 “reforms,” the NCCI has recommended a total 51.4 percent rate reduction for Illinois insurance premiums. This reduction should have resulted in over $2.25 billion savings in insurance premiums for Illinois employers.2 The insurance industry has not followed these industry recommendations despite these recommendations.
- The biannual Oregon Workers’ Compensation Premium Rate Ranking Summary ranked Illinois as 22nd in the nation for workers’ compensation premium costs in 2018. This is down 14 spots from the 2016 study, and one of the largest drops in the country.3
- Profits in the insurance workers’ compensation market in Illinois have significantly increased since 2011. In 2015 and 2016, insurers in Illinois made nearly a billion dollars in profits.4
- Between 2012 and 2016, Illinois experienced a 12.1 percent decrease in total benefits paid, the sixth largest decrease in the country and is most likely attributable to the changes implemented in 2011.5
- The number of new workers’ compensation cases filed in Illinois is on a steady decline, down 24 percent since 2011.6
- There are 339 insurance companies competing for and writing workers compensation insurance in our state. Illinois is tied with Pennsylvania for having the most insurers in the nation.7
1 National Council on Compensation Insurance. https://www.ncci.com/pages/default.aspx
3 Oregon Department of Consumer and Business Services. https://www.oregon.gov/dcbs/reports/Documents/general/prem-sum/18-2082.pdf
4 National Association of Insurance Commissioners 2017 Profitability Report found at: https://www.naic.org/prod_serv/PBL-PB-18.pdf
5 National Academy of Social Insurance. Workers’ Compensation: Benefits, Coverage, and Costs. October 2018 found at: https://www.nasi.org/research/2018/report-workers%E2%80%99-compensation-benefits-costs-coverage-%E2%80%93-2016
6 State of Illinois Workers’ Compensation Commission Annual Reports found at: https://www2.illinois.gov/sites/iwcc/about/Pages/annualreport.aspx
7 Illinois Department of Insurance 2018 Workers’ Compensation Insurance Oversight Report. https://insurance.illinois.gov/wcfu/2018WorkCompReportFinalParta.pdf
PDF Fact Sheet: Workers Compensation in Illinois