Cost of injury compensation impacting state budgets

As the State looks for ways to cut or eliminate expenses, injury compensation is being aggressively reviewed.  Hopefully all sides agree that actual injuries will be appropriately compensated and fraud is the component that is being eliminated.  Michael Lucci at Illinois Policy provides a review of the states activities  to reign in some of these expenses.workers comp

Reforming Illinois’ workers’ compensation laws could save state and local governments hundreds of millions of dollars per year.

By Michael Lucci, Illinois Policy blog  August 30, 2015   Article

The estimated cost to Illinois’ state and local governments of compensating workers injured on the job is just under $600 million per year. Gov. Bruce Rauner has placed fixing Illinois’ workers’ compensation system high on his turnaround agenda in order to rein in these costs as well as to free Illinois’ economy from the dampening effects of the current costly regime. For years, manufacturing and construction firms across the state have urged lawmakers to change the state’s workers’ compensation laws, and manufacturers leaving the state of Illinois frequently cite runaway workers’ compensation costs as their main reason for relocating.

Workers’ compensation is a significant line item in state and local government budgets. Attorney General Lisa Madigan has explained how Illinois’ low causation standard makes it difficult for her to defend the state against workers’ compensation claims, which add hundreds of millions of dollars per year to government costs.

House Speaker Mike Madigan, however, has insisted that the General Assembly and the governor address the state budget deficit solely through spending cuts and tax hikes, dismissing Rauner’s structural reform proposals, including changes to the workers’ compensation system, as nonbudgetary issues     Article continued

Original Article: