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DON TRACY TO PURSUE WORKERS’ COMPENSATION REFORMS
Springfield, IL – Don Tracy, Republican candidate for Lieutenant Governor, unveiled his plans to retain and attract jobs to Illinois though a number of workers’ compensation reforms.
“No one can argue that it’s expensive to do business in the state of Illinois,” said Tracy. “Through personal and professional experience, I can tell you that workers’ compensation costs in Illinois are a critical barrier to our state seeing a dramatic increase in jobs. Workers’ comp costs truly affect the bottom line of businesses, which is why we must take steps to address the rising costs, much like Missouri did in 2005.”
According to the National Council on Compensation Insurance (NCCI), the organization responsible for rate-making in 38 states, since 2006 Illinois workers’ compensation rates have increased a total average of 16.4 percent, 6.3 percent in 2009 alone. During the same period, average rates of all other states decreased by 17.1 percent.
Additionally, in the Oregon Department of Commerce & Business Services’ 2008 ranking of workers’ compensation premium rates across the county, Illinois was ranked 11th highest of 51 jurisdictions analyzed. This is compared to Missouri at 28th, Wisconsin at 34th, Iowa at 41st and Indiana at 50th.
“This research shows that in regards to workers’ compensation costs, Illinois is more expensive for employers than our neighboring states,” Tracy said. “We don’t need to be concerned only about private sector jobs leaving for India and China; we also need to be concerned about our good paying blue collar jobs lost to Indiana, Iowa, Wisconsin and Missouri.”
Tracy detailed six changes to the Illinois workers’ compensation system that he will pursue if elected Lt. Governor. He recommends the state:
- Require the workplace accident to be the “primary” cause of the injury instead of just a “contributing” factor when determining compensability;
- Eliminate abusive, subjective diagnosis by adopting fair objective nationally recognized medical standards to determine extent of the disability;
- Eliminate the $24 million “back door” tax on Illinois employers to fund the workers’ compensation system ;
- Reduce employer liability for pre-existing injuries;
- Deny or reduce benefits when an injury is caused by use of alcohol or unauthorized illegal drugs;
- Enhance impartiality of decision-making by arbitrators and commissioners by requiring 10 years minimum workers’ compensation experience and ethics standards similar to Illinois courts’ review of judges’ conduct.
“Workers’ compensation reforms are an important part of improving Illinois’ ability to attract, create and retain good-paying private sector jobs that pay benefits like healthcare insurance,” said Tracy. “Making Illinois more competitive for job retention, attraction and creation will generate more natural tax revenues to help address our state’s multi-billion dollar financial deficit. ”
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