Fee Schedule Updated

The Commission has updated its medical fee schedule to include maximum reimbursement rates for codes that had been previously listed as "POC53.2."  Section 8.2 of the Workers' Compensation Act authorizes the Commission to establish fee schedule reimbursements using provider non-discounted charge data, non-Medicare relative values, and conversion factors from established fee schedule amounts. 

The Workers' Compensation Medical Fee Advisory Board voted to approve the reimbursements for 16,000 codes on the Professional Services fee schedule, all of which had been paid at 53.2% of the billed amount. 

To view the new Professional Services fees, click the new button, "2013 Professional (10-11-13)" at https://iwcc.ingenix.com/IWCC.asp

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.

WC PPP Form Revised

In HB1698  (820 ILCS 305/8(a) and 8.1 (a)), the Illinois Workers Compensation Commission (IWCC) was tasked with the responsibility of creating the mandatory Workers Compensation Preferred Provider Program  (WC PPP) notification documents that an employer must provide to the employee at the time of injury.  The mandatory form was published by the IWCC on 10/18/2011. 

In a notice published by the IWCC on 6/20/2013, an updated form has been created that replaces the original mandatory document.  The wording of the document has been modified and the requirement of an employee signature has been removed.   The notice states that the revision was made based on employer concerns.  The updated form has a revision date of 6/20/13

To view the new forms, go to http://www.iwcc.il.gov/forms.htm#other.  Forms are available in English and Spanish.

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