NCCI seeks loss-cost reduction for Illinois, cites workers comp reformsPosted On: Jul. 19, 2011 12:00 AM CST
SPRINGFIELD, Ill.—NCCI Holdings Inc. has filed for an 8.8% loss-cost decrease for Illinois employers, citing the impact of workers compensation reforms that were signed into law last month.
Among other estimates, the Boca Raton, Fla.-based arm of the National Council on Compensation Insurance said in a Monday filing with the Illinois Department of Insurance that it expects changes to Illinois’ medical fee schedule will account for 7.4% of the 8.8% decrease. The fee schedule changes go into effect Sept. 1.
Some providers already paid less
The reforms include a 30% medical fee schedule reduction, but a full 30% reduction in medical costs is not likely to come about for several reasons, NCCI said in the filing. For instance, medical provider network contracts arranged by some employers and insurers already have reimbursements that are less than the fee schedule.
NCCI said it expects the remaining 1.4% decrease to result from changes in benefits.
It also said that several reforms in the Illinois law do not have a cost impact or the impact cannot be measured. For example, medical utilization review rights that employers gained may result in cost savings due to denial of payments for some medical procedures, but NCCI said the cost of utilization review services may offset such savings.
It was uncertain the amount of cost savings employers would gain when Illinois legislators adopted H.B. 1698 early in June.