As a result of changes in Illinois’ system for workers’ compensation, rates in the state are noticeably lower than in neighboring states such as Indiana and Wisconsin, according to a report by the Workers Compensation Research Institute.
The report—which compared results among the 17 states that account for more than 60% of workers’ comp cases nationwide—found that medical payments dropped by almost 15%, to an average of $14,513 per claim, during the 12-month period that ended on September 30, 2013. This is down from $17,140 per claim during the 2010-2011 period. On average, Illinois’ workers’ comp costs per claim are lower than Indiana’s, at $18,863, Wisconsin’s, at $17,787, and Iowa’s, $16,051.
Four years ago, a law was passed by the Illinois General Assembly that cut fees by 30%, with future increases only for inflation.
“Because of this reduction in the fee schedule rates, we see that overall medical payments per claim decreased,” said policy analyst Evelina Radeva, author of the report. “This is as a result of this particular provision of 2011.”
While Illinois’ compensation expenses decreased, the state’s average medical payment per claim is still 19% above the median among the 17 states surveyed. The figures used by the report are for claims involving more than seven days of lost time, and includes bills submitted up to 12 months after an injury.
Medical payments per claim in Illinois increased by 4.1% from 2012-2013 to 2013-2014, the report revealed. This increase was below the median increase of 4.8% for the 17 surveyed states.
As of January 1, 2014, Illinois had the 7th highest workers’ comp insurance rates in the country, according to statistics compiled by the Oregon Department of Consumer and Business Services. In 2010, Illinois was the third highest.
