WASHINGTON, D.C. (PRWEB) March 19, 2015
Stephen Schneider, Midwest region vice president for the American Insurance Association (AIA), issued the following statement after testifying before the Illinois House Labor Committee earlier today. Mr. Schneider spoke about the effects of the 2011 Illinois workers’ compensation reforms and the potential for further reforms. In Illinois, AIA members provide more than 42 percent of the workers’ compensation insurance in the state.
Mr. Schneider’s Statement Follows:
“Illinois is a healthy, competitive workers’ compensation insurance market. That is good news for employers and insurers. This hearing provides policymakers, regulators, the employer community and insurers with a chance to reflect on the successes of the 2011 reforms and the continued opportunity for reform that lie ahead.
“Since the 2011 reforms went into effect, workers’ compensation insurance loss costs in Illinois have dropped 19.3 percent and workers’ compensation insurance advisory rates have fallen a commensurate 18.1 percent according to National Council on Compensation Insurance. Additionally, while insurance premiums in Illinois have increased, they have done so at a lesser rate than that of the national average.
“One significant contributing factor has to be that the state’s combined ratio, likely the result of the 2011 reforms, has declined further and at a faster rate than the national average. The data from the Illinois Department of Insurance, Illinois Workers’ Compensation Commission, the National Council on Compensation Insurance and the Workers’ Compensation Research Institute all confirm these points.
“While the 2011 reforms were a step in the right direction, AIA believes that more can be done to improve the workers’ compensation system in Illinois. This includes examining the costly practice of dispensing prescription drugs in non-pharmacy settings and furthering Illinois’ lead in regulating the practice of repackaged pharmaceuticals to limiting reimbursement for non-pharmacy dispensed drugs to one per office visit and the supply to only seven days.”