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Political stalemate keeps workers comp reforms in limbo

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Political stalemate keeps workers comp reforms in limbo

Illinois Gov. Bruce Rauner has signed a stopgap budget and school funding bill into law after a yearlong state budget impasse, but potential updates to the state’s workers compensation system are months away.

The Republican governor on June 30 — one day before the start of fiscal year 2017 — signed legislation to fund critical government services for six months and ensure the state’s school districts open on time in the fall, the Illinois Department of Commerce said Friday.

Prior to signing the legislation, Gov. Rauner said in a statement that Democratic leaders “made it clear they will not take any major action on balancing our budget or passing real reforms until after the general election in November.”

Sources presume Gov. Rauner’s “Turnaround Agenda” is among items that won’t be revisited until at least after the election.

Introduced last year, the measure aims to lower workers comp rates by implementing a more stringent causation standard that would require workers to prove injuries arose primarily from employment, narrow the definition of a traveling employee, and reduce certain medical fee schedule payments, among other things.

“The result of this November’s election in (the Illinois House of Representatives and the Illinois Senate) will determine whether or not there’s any further progress on the Turnaround Agenda items,” said Stephen Schneider, Midwest region vice president at the American Insurance Association in Deerfield, Illinois, in a phone interview Tuesday.

Democrats currently hold 71 of 118 seats in the House and 39 of 59 seats in the Senate, but all seats are up for election on Nov. 8.

“It’s a political game more than it’s a reform game,” Mr. Schneider said. “We need to take the politics out of it and put the reform into it. With that, we’d make the Illinois workers compensation system more attractive and more beneficial to injured workers.”

Mr. Schneider said he remains optimistic that lawmakers will eventually address physician dispensing and the workers comp medical fee schedule, which he said “are two reforms that most other states have enacted.”

Though it’s unlikely that “major developments regarding workers compensation reform will transpire before the elections,” the Property Casualty Insurers Association of America remains “committed to negotiations and maintaining a competitive market,” a spokesman for the Chicago-based organization said Wednesday in an email.

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