New Workers’ Compensation Law a Win for All Sides
Saturday, June 25th 2005
New Workers’ Compensation Law a Win for All Sides
June 21, 2005, Springfield, Il: The needs of working people and employers for a fair and adequate Workers’ Compensation policy were finally addressed with the passing of House Bill 2137; legislation that was signed yesterday by Governor Blagojevich.
This is a victory for injured employees and interestingly, for their employers as well. Some of the most valuable provisions include expedited hearings for injured workers in cases where the insurance company has cut off their benefits. Injured workers understand that cutting off benefits is frequently used by insurance companies as a way to force them into unfairly low settlements through desperation and financial hardship.
Further, the act rewards those companies that purchase Workers’ Compensation insurance. If you, an employer, have Workers’ Compensation insurance, an employee can only file a claim against you under the Workers’ Compensation Act. However, if an employer, usually non union, does not purchase insurance to protect its workforce, then the employer is no longer protected by the act or the caps on benefits it provides. Instead, the employer can be sued with compensation decided by a jury.
Until now, injured workers have been forced to pay the difference between the actual cost of medical services and the available benefits under Workers’ Compensation, and faced threatening collection attempts when a claim had been filed, but not processed. The financial burdens resulting from low compensation limits, delayed payments, or the lack of proper insurance coverage created additional hardships on the injured worker and their families.
To correct this unfair hardship, penalties against insurance carriers for unreasonable withholding of compensation benefits have been substantially increased, and knowingly failing to purchase workers’ compensation insurance is now punishable as a Class Four felony. The new law also increases minimum weekly compensation rates for the first time in thirty years. The amounts recoverable for permanent disability to most injured body parts have also been increased.
The new law removes many of the financial liability pitfalls for medical services that have historically drained an injured worker’s personal resources. In addition, employers will find that their medical expense payouts will be reduced under the new law. Employers will save millions because the rates paid to physicians and hospitals will be similar to a negotiated rate. This will lead to fewer disputes and reduced costs overall.
Offered as a “snapshot” view, the following represent some of the new provisions and/or increased benefits that injured workers can expect:
• The ability of an injured worker to file a civil suit against an employer who failed to purchase workers’ compensation insurance.
• The creation of an “Injured Workers Benefit Fund” to cover injured workers whose employers lacked insurance.
• The creation of a fee schedule governing medical bills.
• Injured workers can no longer be billed for any unpaid balance for services not paid in full by workers compensation. Once informed of a workers’ compensation claim, all attempts by medical providers to seek payment for services from an injured worker must cease.
• Statutory formula for computing compensation benefits during vocational rehabilitation and following a return to temporary part-time or light-duty work.
• Increase of almost forty percent (40%) in the maximum weekly compensation rate for wage differential benefits.
• Increased minimum and maximum weekly benefits for amputations.
• Increase of nearly ten percent (10%) for permanent disability to most body parts and for serious and permanent disfigurement.
• Substantial increase in maximum death and burial benefits.
• Increased penalties for delayed payment of compensation or medical bills.
This new law, which becomes effective immediately, will help the injured worker and his or her employer by reducing the number of issues in dispute and hopefully reduce the amount of litigation. In addition, it also promises the establishment of a new Fraud Unit. Fraud committed by an employer, an employee or a provider of medical services is now punishable as a Class 4 Felony.
For more information regarding the new Workers’ Compensation laws, or other work-related injury topics, visit: On The Job, or search our FAQ's.
Mitchell Horwitz welcomes your comments regarding this article and can be reached at: (312) 372-8822, or email.