Illinois workers comp rates to drop 5.5% in 2015

Illinois businesses will see a 5.5% cut in workers compensation rates as of Jan. 1, 2015, a spokesman for the state said Tuesday.

The 5.5% rate cut, which was proposed in July by the Boca Raton, Florida-based National Council on Compensation Insurance Inc., was reviewed by the Illinois Department of Insurance and considered acceptable on Aug. 29, a department spokesman said.

The decrease brings Illinois' total rate reduction since 2011 to more than 19%, saving employers in the state a total of more than $450 million, according to a news release issued by Gov. Pat Quinn's office on Thursday.

“The major workers' compensation reforms we enacted in 2011 are protecting workers while continuing to reduce the cost of doing business in Illinois,” Gov. Quinn said in the statement. “Illinois' economy is making a comeback, and major reforms like those to workers' compensation are driving it.”

Illinois Workers Compensation Commission Chairman Michael Latz said in the statement that the NCCI's recommended decrease of 5.5% “demonstrates that insurance companies have had to pay less money on claims since 2011 and have enjoyed more profit.”

The 5.5% workers comp rate cut will take effect Jan. 1.