2014 Fee schedule rates will increase 1.52%; 7% lower than 2006

Medical fee schedule rates will increase 1.52% on January 1, 2014. If the fee schedule had tracked medical inflation, rates would be 30% higher than in 2006; instead, rates are 7% lower than 2006.

Section 8.2(a) of the Illinois Workers' Compensation Act provides that, each year, fee schedule rates shall increase or decrease by the percentage change in the Consumer Price Index-U (CPI-U) in the previous year.

The 2014 rates will be posted as soon as the vendor, Optuminsight, calculates them and obtains information about new and deleted codes. The rates are usually posted at the end of the year. We will give notice on our blog when the rates are online.

Governor Quinn press release on insurance rate reduction; Reminder on attorneys' fees

Governor Quinn press release on insurance rate reduction  

Governor Quinn: Historic Workers’ Compensation Reform Saved Illinois Employers $315 Million
Recommended Rate Has Dropped 13.3 Percent Since Governor’s 2011 Reforms;
Latest Proposed Decrease of 4.5 Percent Will Help Ensure Fair and Honest Wages

CHICAGO – Governor Pat Quinn today announced that the National Council on Compensation Insurance (NCCI) has filed a request for an overall reduction of 4.5 percent in workers' compensation rates from the Illinois Department of Insurance (DOI).

 

Since the 2011 Workers’ Compensation Reform law championed by Governor Quinn, the department estimates that overall savings have reached $315 million for the Illinois Workers’ Compensation system. With the implementation of the proposed rate reduction, the advisory rate level will have dropped 13.3 percent below the advisory rate level prior to the changes sought and enacted by the governor. 

 

Today's announcement is part of Governor Quinn's commitment to strengthen Illinois’ business climate and drive more economic growth while ensuring that all workers are protected, treated fairly and receive the compensation they deserve. “When I came into office, Illinois had one of the most burdensome workers’ compensation systems in the country,” Governor Quinn said. “We turned that statistic around and delivered real reform that is saving hundreds of millions of dollars for our businesses and keeping the system honest to our workers. This rate review will ensure the state has a responsible advisory rate that supports business growth and protects workers.”

 

Officials estimate the latest proposed reduction in workers’ compensation advisory and loss cost rates could result in overall reduction in premiums of up to $110 million. This estimate is based on the credit rating organization A.M. Best’s calculations as they reviewed 2011 premiums. Individual rates for businesses may vary based on claims experience, payroll, and other factors. 

 

With the implementation of the proposed rate reduction, the advisory rate level will have dropped 13.3 percent below the advisory rate level prior to the 2011 Workers’ Compensation Reform Legislation. The overall premium impact based on the advisory rates is approximately $315 million. Individual companies may reflect different rate changes.

 

The NCCI advisory rates determine the premiums businesses pay for workers’ compensation insurance. Department of Insurance (DOI) actuaries must confirm the calculations submitted by NCCI, a process that typically takes about 60 days. 

 

“We’re pleased about the proposed rate reduction and look forward to the review process to confirm the results,” said DOI Director Andrew Boron. “The lower rate would benefit Illinois employers with cost savings.” 

 

If the department accepts the filing to be effective January 1, 2014, employers should contact their insurance agent prior to their 2014 renewal date to determine the impact on their premium. 

 

Since taking office in 2009, Governor Quinn made workers’ compensation reform and strengthening Illinois’ business climate a top priority. He launched a working group on the issue, proposed legislation and worked with the General Assembly to enact historic reform that is allowing businesses to save hundreds of millions of dollars, which in turn supports economic growth.

 

Earlier this month, Governor Quinn signed three laws that fight questionable practices to protect Illinois workers’ paychecks. House Bill 2649, House Bill 923 and House Bill 3125 deal with the misclassification of workers and the attempts of employers to avoid paying state employment taxes and premiums.

IL Supreme Ct olds that the mailbox rule applies to Commission review cases; First felony conviction won against uninsured employer; NCCI files for 4.5% decrease in 2014 WC advisory insurance rates

Illinois Supreme Court holds that the mailbox rule applies to Commission review cases

In a lengthy and comprehensive analysis, the Illinois Supreme Court held that the mailbox-rule applies when a party appeals from a Commission decision to the Circuit Court.  In Gruszecza v. IWCC, a majority of the Supreme Court interpreted Section 19(f)(1) of the Act to dictate that the proceeding to appeal a Commission decision is commenced when the request for summons is placed in a mailbox.  Section 19(f) states: “A proceeding for review shall be commenced within 20 days of the receipt of notice of decision by the Commission.”  According to the holding in Gruszecza, the date that a summons is mailed, not received and file-stamped by the Clerk of the Circuit Court, will control when a party seeks judicial review of a Commission decision.

To read the decision, go to http://www.iwcc.il.gov/grusz.pdf


First felony conviction won against uninsured employer

For the first time, an uninsured employer has been convicted of a Class 4 felony for failing to obtain workers' compensation insurance. Class 4 felony penalties are 1-3 years in penitentiary and/or fines up to $25,000.

The IWCC's Insurance Compliance Unit worked for over one year with the Cook County Sheriff's Office and the Cook County State's Attorney's Special Prosecutions Division to bring about this result.

Ahmed Ghosien, d/b/a Ghosien European Auto Werks in Hometown, was first contacted in 2010 about his lack of insurance. He agreed to get insurance and pay a fine for noncompliance, but he never made payments and the insurance was cancelled for nonpayment. He was indicted in 2012, and the case was continued several times until he finally pled guilty on July 25. His sentencing date is in October.

Making sure that employers have insurance protects workers and other employers. Congratulations to the Insurance Compliance staff for their achievement!


NCCI files for 4.5% decrease in 2014 WC advisory insurance rates

The National Council on Compensation Insurance (NCCI) filed for an 4.5% decrease in voluntary advisory insurance rates, effective January 1, 2014, following the 3.8% decrease in 2013. These significant savings follow the enactment of House Bill 1698 on June 28, 2011.