Illinois Ambulatory Surgery Center AssociationIASCA

News & Announcements

Governor Vetoes Workers’ Compensation Bills

posted: August 28, 2017

Over the course of the past week, two pieces of workers’ compensation reform legislation reached Governor Bruce Rauner’s desk only to be vetoed.

The first of these bills, House Bill 2622, authorized the formation of a not-for-profit state run insurance company for workers’ compensation. The formation of a not-for-profit competitor promised to lower workers’ compensation costs for employers, a model that has been adopted successfully in other states.

The second, House Bill 2525, would have amended the insurance code in a separate attempt to reduce workers’ compensation insurance costs. Aside from modifications to what the state considers to be an injury sustained during the course of work, the bill attempts to rein in workers’ compensation insurance rates by deeming certain rates to be excessive. Specifically, if an insurance premium or service provided by the insurance company produces a profit margin that the state believes is exorbitant; those rates could then be disapproved for Government services.

Speaker Madigan’s office offered a sharp rebuke of the Governor’s veto on the formers bill, and vowed that House Democrats would attempt an override. Neither bill addresses the provider fee schedule cuts proposed by the Governor, instead attempting to lower costs through alternate mechanisms. The Governor’s veto suggest that he is committed to pursuing such cuts, and the failure or success of an override vote in the House  could serve as a litmus test for the political willpower aligned behind his plan.

Read More About HB 2622

Read More About HB 2525