The Illinois legislature is considering a bill, HB 2919, that would create a state workers' compensation insurance fund. The proposal would put the state in the business of operating an insurance company that would compete with private carriers. There are three key reasons why this is unnecessary and harmful to taxpayers, injured workers and employers.
First, with the numerous and unending economic crises already confronting Illinois taxpayers, and with Illinois having the worst credit rating of any state, the legislature must not take on such a huge cash flow drain and new future liabilities. Illinois already faces a pension crisis that burdens taxpayers for generations. It makes no sense to then add the potentially limitless liability of long-term and often lifelong medical claims for injured workers, as well as lost wages. Can the state guarantee these payments?
Second, with 324 workers' compensation insurers, there is no lack of workers' compensation options for Illinois employers. Equally important, the state's record of competing with the private sector does not inspire confidence; witness the struggles of College Illinois, the state's failed college tuition plan.
Third, there is no credible evidence that creating a state fund will lower the cost of coverage. A state's relative workers' compensation costs are unrelated to the nature of the insurance mechanism, and proponents' attempts to sell legislators and employers on the merits of a state fund based on these assertions are wrong. There are other ways to lower costs that do work. Moreover, self-insured employers have the same cost drivers in Illinois as private insurers.
Illinois public policy must encourage private enterprise and free markets. The best way to address escalating costs is to attack the cost drivers.
Vice President of Industry, Regulatory and Political Affairs
Property Casualty Insurers Association of America
- Share Facebook Twitter
Article sent to (required)E-mail
Article sent from (required)E-mail Name
Subject Line (article title)
Message (optional)Success - Article sent Click to close
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.Need more information about reprints? Visit our Reprints Section for more details.
Contact information ( * required )Name * Company Telephone * E-mail *
Article InformationTitle URL
Message (optional)Success - Reprint request sent Click to close