Illinois Workers Compensation Rates

The key components of the recent workers compensation reform bill are aimed at reducing costs:


  • 30% reduction in the Medical Fee Schedule
  • Utilization of preferred provider organizations (PPO’s) which will heighten competition
  • Elimination of lifetime wage differential payments
  • Improved efficiencies in medical bill processing and automation

While these workers compensation measures are welcomed by Illinois businesses... the savings by the insurance carriers won’t be known for some time.   I believe the immediate 8% rollback on the rates was more of a political “feather in the cap” rather than a true measure of what this reform package will bring to Illinois businesses.   


According to the NCCI, insurance companies in Illinois saw a combined ratio of 123% in 2010. And, the proposed overall rate change for our workers compensation premiums will be an increase of 3.5% for 2012.  


  • Manufacturers 4.2%
  • Goods and Service Companies 3.7%
  • Contractors 2.3%
  • Clerical 1.2%
My hope is that the reform bill will maintain the same level of service to our workers and bring down the combined ratio of our insurers. 

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