Mark Denzler Vice President & Chief Operating Officer Illinois Manufacturers’ Association •Wisconsin passed the first WC law in 1911. •Illinois followed suit and passed law in 1912 •Based on “Prussian System” developed in 1871 by Otto Von Bismark in which state-administered system is the exclusive remedy for injured workers Costly and burdensome to employers Tilted toward injured workers Makes Illinois less competitive •Petitioners and Respondents •Arbitrators (judges) •Illinois Workers’ Compensation Commissioners 1. Pay work-related medical bills 2. Weekly wage payments while off work 3. Settlement based on permanency of injury Employer community offered SB 1549 (Sen. Kyle McCarter) Failed to pass Senate – 25 votes 1. Primary Cause 2. AMA Standards 3. Utilization Review 4. Medical Fee Schedule 5. Drugs & Alcohol 6. Wage Differential 7. Physician Networks/Doctor Choice Rep. Bradley and Sen. Raoul threatened “blow up” bill that passed the House and a Senate Committee. Imposed a proximate cause standard into state statute for the first time in history Did not get primary cause language AMA Standards must be used by both arbitrators and doctors for first time in IL history AMA standards used in 34 states Exemptions for age, occupation, future earnings, and conflicting medical reports Strengthened utilization review is applicable to all HC providers Retrospective and prospective HC provider participation is mandatory Medical Fee Schedule reduced by 30 percent across the board. Illinois will continue to have the 2nd highest MFS in the United States Drug & alcohol presumption reversed. Under new law, drugs and alcohol will be presumed to have caused the accident. Wage differential payments capped at the age of 67, or 5 years, whichever is later. Previously, wage differential payments continued for life Employers/insurers allowed to create physician networks and negotiate rates Injured workers limited to 2 choices – only 1 choice if they refuse to use the employer’s doctor Cap on carpal tunnel awards at 26 weeks – today’s average is 40 weeks. Cap on medical implants and devices Replacement of arbitrators. New continuing education and ethics requirements. Panels of arbitrators, rotated. New fraud powers and penalties Special Assistant AG for WC Fraud Supporters of Final WC Bill IMA IRMA Chicagoland Chamber City of Chicago Cook County Metro Counties Ford Navistar Mitsubishi Southland Chamber IL Business Roundtable IL Trucking Association Car Dealers Association IL Municipal League Hyatt United Airlines IL Restaurant Association IL Hotel & Motel Assocation IL Renewable Fuels Assn. Commonwealth Edison Doctors Hospitals Chiropractors Other HC providers * Unions/Trial Lawyers were neutral NCCI has already issued an advisory recommending an 8.8 percent cut in rates on September 1, 2011. Does not include savings for PPO networks, UR and some other provisions $300 million reduction for insured entities Does not include savings for self-insured entities