State-financed workers' comp insurance company gets House OK

SPRINGFIELD, Ill. (AP) - Illinois Democrats want to set up a state-monitored insurance company to drive down workers' compensation insurance costs.

The House voted 62-43 Thursday on a plan that would establish an independent underwriter with a $10 million state loan. It would act as an insurance company in the market and pay back the loan.

Glenview Democratic Rep. Laura Fine's idea is that it would compete with policy writers that Democrats claim haven't lowered premium rates reflected by cost-saving changes they made in 2011.

It's the same legislation Republican Gov. Bruce Rauner vetoed last year. Rauner has made lowering workers' comp costs one of the top priorities of his three years at the helm. But Republicans say government intervention in the market is not the answer.

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The bill is HB4595 .