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.

Workers' Compensation Legislation Sent to Governor Quinn

HB 3390 (Sims/Mulroe) passed out of the General Assembly on Friday on a concurrence motion by the House (118-0-0). Senate Amendments 2 and 3 became the bill. The Senate approved the amendments 58-0-0.  The bill makes four changes to the Workers’ Compensation Act and is effective upon signing by the Governor.

1.  Elimination of handbook requirement

The bill directs the Commission to post its informational handbook on its website and removes the mandate that the Commission send a copy of the handbook to each injured worker who is the subject of an accident report.  This change represents an elimination of a $62,500 line item in the Commission’s FY14 budget.

2.  Elimination of $35 transcript fee paid by employers and employees to appeal cases

The bill eliminates the $35 fee paid by parties who appeal decisions from the Commission to the Circuit Court. Instead, parties who wish to appeal a Commission decision must file with the Commission a notice of the intent to appeal a decision to the Circuit Court. This change applies to all decisions by the Commission entered after the effective date of the bill.  It also ends an archaic and time-consuming cost calculation for the preparation of records. Remaining monies in the Transcript Deposit Fund will be transferred to the Injured Workers’ Benefit Fund, which is a fund dedicated to providing benefits to employees who have been injured at a workplace without workers’ compensation insurance.

3.  Requirement for Commission to obtain interpreters when necessary for settlement contracts

The bill requires the Commission to furnish language interpreters for petitioners who do not speak English, do not have an attorney, do not have their own interpreter, and are signing settlement contracts. 

4. Requirement for Arbitrators to demonstrate workers’ compensation expertise

Finally, the bill provides that all persons appointed to be Arbitrators must demonstrate their knowledge and experience with the Workers’ Compensation Act in writing.  It also eliminates erroneous references to the Personnel Code.  Pursuant to Public Act 97-719, all Arbitrators are appointed by the Governor with the advice and consent of the Senate.

To view the bill, go to: http://www.ilga.gov/legislation/billstatus.asp?DocNum=3390&GAID=12&GA=98&DocTypeID=HB&LegID=75259&SessionID=85

Gov. Quinn's ILWC Arbitrator Reappointments

Earlier this month, Governor Quinn announced his IL WC arbitrator reappointments for arbitrators whose terms expired on 7/1/2012.

Zone 1 (Collinsville, Herrin, Mt Vernon): Gerald Granada

Zone 2 (Quincy, Springfield, Urbana): Nancy Lindsay

Zone 3 (Bloomington, Kewanee, Peoria): Stephen Mathis & Maureen Pulia

Zone 4 (Geneva, Joliet, Ottawa): George Andros

Zone 5 (Rockford, Waukegan, Woodstock): Douglas Holland

Zone 6 (Chicago, Wheaton): Peter O'Malley

Zone 7 (Chicago): Brandon Zanotti

Neva Neal Mundstock was reappointed and is currently on medical leave.

Governor Quinn did not reappoint two arbitrators, Peter Akemann of Zone 2 (Quincy, Springfield, Urbana) and Jacqueline Kinnaman of Zone 6 (Chicago and Wheaton).

The Illinois Appointments website contains a complete overview and full list of the IL Workers’ Compensation Commission Arbitrators.

2012 IWCC & IDOI updates

There have been several IWCC & IDOI updates since our last post.

Governor Quinn announced the appointment of Andrew Boron as the new director of the Illinois Department of Insurance.

Governor Quinn also announced the appointments of three additional IWCC arbitrators:

• William Gallagher will handle former Arb. Tobin's call in Zone 2 (Quincy, Springfield, and Urbana).
• Douglas McCarthy will be based in Chicago and will serve at large where needed.
• Brandon Zanotti will handle the Chicago "TBA" call formerly handled by Arb. Dollison.

The IWCC announced yesterday that, due to arbitrator and commissioner confirmation hearings, arbitration will be limited this Friday, February 17, 2012.

On Friday, February 17, arbitrators and commissioners will appear before the Senate Executive Appointments Committee in Chicago for their confirmation hearings. Click here for more information on the hearings.  

In Chicago, arbitrators will conduct business from 8:30 - 10:30. At 10:30, Chicago arbitrators will stop business for the day with one exception: Arbitrator Thompson-Smith's 2:00 status call will be held.  

In Waukegan, Arbitrator Holland will handle pro se cases from 8:00 - 9:00 am. He will hold his status call from 9:00 - 10:00 am. At 10:00, he will leave for Chicago.  

All other downstate calls are cancelled for February 17. If your case is set for trial that day, please contact the arbitrator and the other party to reschedule.

IWCC Arbitrator Reassignment Follow-up

The IWCC posted a follow-up to its arbitrator reassignments. For all questions regarding arbitrators or arbitration, the IWCC’s contact is Bertha Parker. 

Currently, there are three types of arbitrator reassignments:

• Immediate reassignments
• One of HB 1698's initial changes was the termination of the IWCC arbitrators on July 1, 2011; however, they continued to serve pending either reappointment or replacement.
• When Governor Quinn announced his arbitrator appointments in October, John Dibble, Gilberto Galicia, James Giordano, Kathleen Hagan, Robert Lammie, Andrew Nalefski, Richard Peterson and Joseph Prieto were not reappointed, and Charles DeVriendt was instead appointed to the Commission.
• In addition to the initial changes, 2 reappointed arbitrators have recently changed positions, with Ruth White's appointment to the Commission and Jeffrey Tobin's appointment to the Seventh Judicial Circuit.
• The immediate reassignments and call coverage are due to the former arbitrators who were not reappointed.  The IWCC distributed the cases that were tried, but not yet decided, to the current arbitrators to render decisions.
• Temporary assignments
• Arbitrators Jutila (Chicago) and Neal (Collinsville) are out on medical leave, so the IWCC is assigning arbitrators to cover these calls.
• January 1, 2012 reassignments
• Effective January 1, 2012, the current 24 arbitrator territories reduce to 17 territories, and a combination of three arbitrators will rotate through each territory.  According to the IWCC's announcement:

For the rest of 2011, the current arbitrator assignments are still in place. These reassignments should not impair parties' ability to move their cases in November and December 2011. There is no need to cancel scheduled trials.

IWCC Arbitrator & Commissioners Update

The Illinois Workers' Compensation Commission issued several updates regarding its arbitrators and commissioners in the last week.  Here is a summary of the announcements:

On 11/7/11, Governor Quinn announced Nancy Lindsay's appointment as an IWCC arbitrator and Ruth White's appointment as an IWCC commissioner.

Nancy Lindsay served as a commissioner since 2006 and was most recently the employer representative on Panel B. As an arbitrator, her hearing sites will be Springfield and Quincy.

Ruth White served as an arbitrator for over 30 years, and she was recently reappointed by Governor Quinn to a one year term.  She will now serve as the employer representative commissioner on Panel B.

Arbitrator Jeffrey E. Tobin was recently appointed to the Seventh Judicial Circuit for the Jacksonville area, and he will no longer hear workers' compensation cases. He served as an IWCC arbitrator since 2004, and he was recently reappointed by Governor Quinn to a two year term.  

The IWCC posted the 2011 coverage schedules for the former arbitrators' calls, and the 2012 arbitrators' schedules are also available at this time.

Gov. Quinn Appoints Seven to Workers' Compensation Commission

It has been a very busy week keeping up with the changes at the Illinois Workers' Compensation Commission (IWCC). 

On Monday, Governor Quinn's office announced seven appointments (two new Commissioners and five reappointments) to the Workers' Compensation Commission. Three additional Commissioners are currently serving four year terms that are set to expire on January 21, 2013.

Reappointed Commissioners:

• Mario Basurto
• Daniel R. Donohoo
• David L. Gore Jr
• Kevin W. Lamborn
• Nancy H. Lindsay

New Commissioners:

• Charles DeVriendt
• Michael Paul Latz

Currently Serving Commissioners:

• Yolaine Dauphin
• Thomas Tyrrell
• Mitchell Weisz (Chairman)

Gov. Quinn Appoints New Arbitrators

Governor Quinn announced the new Illinois workers' compensation arbitrator appointments this afternoon.

One of the first changes resulting from HB 1698 was the termination of the Workers’ Compensation Commission arbitrators for the State of Illinois on July 1, 2011. The IWCC's Workers' Compensation Advisory Board was charged with advising Governor Quinn on arbitrator appointments and reappointments.

According to the press release, 10 former arbitrators were not reappointed by Governor Quinn. They include:

• John Dibble, Gilberto Galicia, James Giordano, Kathleen Hagan, Robert Lammie, Andrew Nalefski, Richard Peterson and Joseph Prieto.
• Charles DeVriendt will be appointed to the Commission instead.
• Jennifer Teague, a former arbitrator who resigned as of July 30, 2011.

New Illinois workers' compensation arbitrators are:

Gov. Quinn appoints new IWCC Medical Fee Advisory Board & Board Meeting Postponed

The IWCC Workers’ Compensation Medical Fee Advisory Board meeting on September 13 was postponed until next Tuesday, September 20 at 9am.  The agenda on the IWCC website remains the same for the next meeting, so the Board will address both the new fee schedule regions and the PPP notification form on the 20^th.

The IWCC announced that Governor Quinn appointed new members to the Workers’ Compensation Medical Fee Advisory Board.  The Board members serve four year terms.  The Board will have six new representatives serving alongside returning members Kim Moreland (Rising Medical Solutions) and John Smolk (United Airlines).

The new Workers’ Compensation Medical Fee Advisory Board:

Employee Representatives:

Jason Keller (Illinois AFL-CIO)
Dianne McGuire (College of DuPage Trustee)
vacant employee representative slot

Employer Representatives:

Barb Molloy (Molloy Consulting)
Kim Moreland (Rising Medical Solutions)
John Smolk (United Airlines)

Medical Provider Representatives:

Avi Bernstein, MD (The Spine Center)
William McAndrew (Illinois Hospital Association)
Michael Vender, MD (Hand Surgery Associates)

Illinois WC Preferred Provider Program (PPP) Update

An update on the Preferred Provider Program (PPP) process from the August 23^rd IWCC Workers' Compensation Medical Fee Advisory Board:

Once Governor Quinn signed HB 1698 into law, Illinois employers gained the ability to employ a Preferred Provider Program (PPP) to direct their injured workers to participating providers for treatment.  In order for employers to implement the PPP direction of care process, HB 1698 lists two basic requirements:

1.    The PPP must be approved by the Illinois Department of Insurance (IDOI).

2.    The Illinois Workers’ Compensation Commission (IWCC) must promulgate a notification form that the employer will provide to an employee at the time of injury.

During the 8/23/11 IWCC Workers’ Compensation Medical Fee Advisory Board meeting, an Illinois Department of Insurance representative confirmed that the IDOI is ready to accept PPP applications. 

The applications should follow the same format as the current PPA (Preferred Provider Program Administrator) process, and they should include all of the current PPA requirements along with the new PPP requirements specifically outlined in HB 1698.  As of today, the IDOI website does not have a list of approved, or provisionally-approved, WC PPPs on their website. 

Now that some current IDOI–approved workers’ compensation PPAs, such as HFN, have submitted their PPP applications to the state, the IWCC will need to either create a form, or provide employers the required notification criteria, to fulfill its notification form requirement detailed in HB 1698.

As of the 8/23/11 Board meeting, the Commission did not have a draft of the notification form.  The Board members stated any third parties may submit their proposed drafts of notification requirements to the Board before the next scheduled meeting on September 13.   They will discuss the standards for the notification form again at that meeting.

Once that IWCC notification form is available, employers will be able to utilize their PPPs.

As an Illinois-based and Illinois-focused company, HFN understands the requirements and opportunities for providers and employers specific to the Illinois workers’ compensation system.  For more information about the PPP process, or to designate HFN as your PPP, please email Guy Swanson, HFN’s Director of Workers’ Comp, or call 630.990.8609.

Governor Quinn Signs WC Forcible Felony/Reckless Homicide Reform Bill

Governor Quinn signed SB 1147/Public Act 097-0276 into law on Monday.  The legislation excludes injured employees from receiving workers’ compensation benefits if their claim resulted during the commission of a forcible felony, a reckless homicide, or aggravated driving under the influence of alcohol or drugs.  The law comes as a response to the State Trooper Matt Mitchell case, detailed in the Chicago Tribune & Belleville News-Democrat. 

These changes are in addition to the intoxication defense reforms included in HB 1698 (820 ILCS 305/11) as part of that overarching WC reform bill. Those changes include:

·         The measurement of intoxication is .08 for alcohol or any finding of illegal drugs.

·         The burden of proof shifts to the employee in the new law.

·         The law outlines the collection & testing processes and procedures for determination of intoxication.

While SB 1147’s reforms became effective on Monday, the HB 1698 changes only apply to injuries that occur on or after 9/1/11.

Federal Judge Denies Illinois Arbitrators’ Motion

The Belleville News-Democrat reported Saturday that U.S. District Judge Sue E. Myerscough denied the temporary restraining order requested by five Illinois workers’ comp arbitrators in federal court.  As we discussed previously, HB 1698 included a provision that terminated all of the Illinois workers’ compensation arbitrators.  The Governor and the newly appointed Workers’ Compensation Advisory Board are in the process of selecting new, or reappointing previous, arbitrators at this time.

One clarification to the article, as of this morning it states:

…The only arbitrators who will not return are those who do not have a law license, which is a requirement of the reform package. 

While HB 1698 does require that arbitrators are authorized to practice law in Illinois, there is a clause that exempts previously employed arbitrators from that requirement:

Each arbitrator appointed on or after the effective date of this amendatory Act of the 97^th General Assembly and who has not previously served as an arbitrator for the Commission shall be required to be authorized to practice law in this State by the Supreme Court, and to maintain this authorization throughout his or her term of employment.

Governor Quinn appoints the Workers’ Compensation Advisory Board

Governor Quinn announced his 12 appointments to the Workers’ Compensation Advisory Board in a press release today.  HB 1698 included a provision that terminated all of the members serving on the Advisory Board as of the legislation’s effective date.

The 12 Advisory Board members are:

1.    Mitchell W. Abbett (Holten Meat Inc.)

2.    Richard Aleksy (Corti, Aleksy, and Castenada)

3.    Aaron Anderson (Painters Dist. Council #30)

4.    Michael Carrigan (Illinois AFL-CIO)

5.    John Carpenter (Chicagoland Chamber of Commerce)

6.    Mark Denzler (Illinois Manufacturers' Association)

7.    Phillip Gruber (International Association of Machinists and Aerospace Workers)

8.    David Halffield (Sears Holdings Management Corporation)

9.    William Lowry (Nyhan, Bambrick, Kinzie, and Lowry)

10. Mark Prince (Prince Law Firm)

11. Sean T. Stott (Laborers' International Union)

12. David Vite (Illinois Retail Merchants Association)

One of the main responsibilities of the Advisory Board is the make recommendations to the Governor about the initial set of arbitrator appointments. 

As of July 1^st, all of the current Commission arbitrators were terminated due to the new legislation.  The Commission is currently taking applications for the arbitrator positions, and the Governor has not announced when he will begin appointing new, or reappointing former, arbitrators.  There is also a lawsuit from five arbitrators attempting to block the firings and have that section of HB 1698 ruled unconstitutional.

Five Arbitrators File Suit to Block Firings

One of the first changes resulting from HB 1698 was the termination of the Workers’ Compensation Commission arbitrators for the State of Illinois on July 1, 2011.  The governor is scheduled to appoint new, or reappoint current, arbitrators at an as yet undetermined date.  Until then, the current arbitrators will continue to hear cases until either they are reappointed or their successors replace them. 

Five arbitrators filed suit Tuesday in federal court in order to block the firings and have that particular section of the new legislation ruled unconstitutional.

Both the Belleville News-Democrat & the State Journal Register have the full stories regarding this development.

HFN CEO applauds preferred provider program & direction of care in HB 1698

HFN CEO David Kolb’s statement commending Governor Quinn for improving injured workers’ medical care through the use of preferred provider programs appeared yesterday in the TRIB local Oak Brook Business section.  It read in part, “Recognizing the need for integrated and coordinated cost effective medical for injured workers, this bill allows, for the first time, employers the ability to refer workers to a comprehensive network of medical providers, skilled in effectively treating workplace injuries.” 

Overview of New Workers' Comp Regulations

Now that Governor Pat Quinn signed HB 1698 into law on Tuesday, it is time to look ahead to the efforts involved in implementing these changes. From the IWCC Fee Schedule Committee’s rates and repricing methodology decisions to the Department of Insurance’s release of the additional Preferred Provider Program approval requirements, the coming weeks and months are sure to be extremely busy for everyone involved in the workers’ comp system.

Here is HFN’s general overview of the significant changes to the Illinois workers’ compensation regulations included in the bill. Our individual in-depth assessments of these major changes will start shortly, and we will continue to post regular updates regarding their implementation.

Gov. Quinn will sign the WC reform package

The workers’ compensation reform package is almost official. Governor Pat Quinn will sign HB 1698 into law tomorrow at a bill signing ceremony. Here’s the full story on the Chicago Tribune.