Panel advances bill to eliminate Illinois' workers comp system

SPRINGFIELD, Ill.—An Illinois House committee has advanced legislation that would do away with the state’s workers compensation system.

Seemingly at odds with what observers have said is much-needed reform because of the system’s rising cost, S.B. 1933 passed a first reading Wednesday in the Illinois House Executive Committee including amendment by sponsoring Rep. John E. Bradley, D-Marion, that would eliminate the workers comp system in Illinois and leave employees with the option of suing their employers for benefits.

“The workers compensation system is broken. The workers compensation system needs to be fixed,” Mr. Bradley told reporters Wednesday. “We may have reached the point where we just have to completely blow it up and start over.”

What several have called the “nuclear option,” the bill would send workers compensation claims into the court system, which could leave employees in the lurch when it comes to follow-up treatment or families seeking death benefits if a worker is killed on the job.

Reports estimate that if the measure were to become law, it could send up to 50,000 cases a year into the court system.

While the bill would have to pass the Illinois House and Senate before going to Gov. Pat Quinn, who made his own reform proposal this year, observers say they doubt it will get that far.

Steve Schneider, Chicago-based Midwest region vp for the American Insurance Assn., said he doesn’t think the measure will become law given the wide-ranging adverse effects it would have on employers, workers and hospitals. Abolishing Illinois’ workers compensation system is an “ill-conceived thought,” he said.

“This is not reform because there are no beneficial results from something like this,” Mr. Schneider said.

The AIA said it is in favor of separate legislation in the Senate this year that would enhance penalties for fraud, provide the state insurance department with greater power to investigate claims, and use American Medical Assn. guidelines on impairments.