Illinois governor vetoes bill that would control comp premiums

Illinois Gov. Bruce Rauner on Friday vetoed a bill that would have required insurance companies to gain state approval for workers compensation rates. 

Gov. Rauner sent a letter to lawmakers on Friday saying House Bill 2525 didn’t go far enough to reform a system known as among the most expensive in the nation and “imposes additional regulatory structures where they are not needed.”

“We need thoughtful reform of this system, and we must focus our efforts on solutions that encourage economic growth while also making sure we are providing efficient and effective care to injured workers,” the Republican governor wrote.

The Washington, D.C.-based American Insurance Association praised Gov. Rauner’s response.

“Illinois already has the most competitive marketplace for workers’ compensation insurance in the nation — reversing course and putting the state in charge of setting prices for workers’ compensation insurance will do nothing to fix the true cost drivers of Illinois' workers' compensation system,” said Steve Schneider, vice president for state affairs, Midwest region, in a press statement.