Senate-Approved Workers’ Comp Overhaul Rejected by Illinois House

A major overhaul of the state’s costly workers’ compensation system failed in the Illinois House on May 29, raising the possibility that lawmakers would push to entirely abolish a system that handles tens of thousands of cases each year.

The House rejection of the workers’ comp bill came one day after the Senate approved it by a vote of 46-8.

Supporters said the plan would have cut between $500 million and $700 million from the program’s costs by reducing medical fees, tightening review of workers’ claims and making other changes.

The sponsor, Rep. John Bradley, said before the vote that he would not try again if the measure failed. He warned that the Illinois Senate would vote on getting rid of workers’ compensation altogether if it was rejected. The House has already voted to eliminate it.

Abolishing the system would put the 50,000 annual claims into the courts. Injured workers would have to prove employers were at fault for injuries and could face long waits for much-needed money. Meanwhile, employers would face the possibility of juries handing out millions of dollars for pain and suffering and other damages.

Business owners complain that workers’ compensation insurance is too costly, particularly in light of Illinois’ recent income tax increase. Medical fees under the program are second-highest in the nation, and they say arbitrators, doctors and lawyers help each other by inflating treatment costs and compensation awards.

Republicans said they opposed the measure because most of the savings came from a 30 percent cut in payments to doctors and hospitals. They also said it should have required workers to show that their injuries were job-related before getting any money.

Gov. Pat Quinn accused House Republicans of squandering “the best opportunity our state has seen in decades” to overhaul workers’ comp.

Republicans said workers would see little change under the legislation and businesses might benefit, leaving health care providers to take most of the blow.

The bills are HB1698 and SB1933.