Page 11 - June2017

INDUSTRY

(800) 613 2600 Illinois Still Seeing Impact of 2011 Workers’

:::.:IU US:. Compensation Reform Law, Says WCRI Study

The average total cost per workers’ compensation claim The following are among the study’s other findings:
in Illinois decreased 6.4 percent since 2010, but remained
Our higher than most of the 17 other states studied in a recent • Litigation expenses per claim grew faster in Illinois when
compared with the other 17 states WCRI studied.
report, CompScope™ Benchmarks for Illinois, 17th Edition,
• In Illinois, 42 percent of workers’ compensation claims
by the Workers Compensation Research Institute (WCRI).
“The 6.4 percent decrease mainly reflects the impact of involved defense attorneys, if the injured worker had
seven-plus days of lost time—a higher rate of defense
the 30 percent reduction in the fee schedule rates for all
attorney involvement than in all other states WCRI
examined.
is like chocolate medical services, which took effect under 2011’s Illinois • Thirty-three percent of Illinois claims had at least one
House Bill 1698,” said Ramona Tanabe, WCRI’s executive
medical-legal expense vs. 24 percent in the typical study
vice president and counsel. “Despite this decrease, the
average total cost per claim in Illinois was 21 percent state.
pudding... higher than the total cost per workers’ compensation claim To learn more about this study or how to purchase a
in the median WCRI study state for 2013 claims evaluated
through early 2016.” copy, visit https://www.wcrinet.org/reports/compscope-
benchmarks-for-illinois-17th-edition.
Indemnity benefits per workers’ compensation claim
were also higher in Illinois than in the typical state, as The Cambridge-based WCRI is recognized as a leader in
were medical payments per claim. The indemnity benefit providing high-quality, objective information about public
finding reflected higher wages for injured workers, longer policy issues involving workers’ compensation systems.
duration of temporary disability, and more frequent
One taste and costly permanent partial disability (PPD)/lump-sum The Workers Compensation Research Institute (WCRI)
is an independent, not-for-profit research organization
settlements, WCRI found. Higher prices for, and utilization
of, professional services led to Illinois’ higher-than-typical
based in Cambridge, MA. Organized in 1983, the Institute
and you'll be medical payments per claim, according to WCRI’s study, does not take positions on the issues it researches; rather,
it provides information obtained through studies and
except for payments involving evaluation and management
data collection efforts, which conform to recognized
services.
back for ! “Indemnity benefits were the largest component of total scientific methods. Objectivity is further ensured through
rigorous, unbiased peer review procedures. WCRI’s diverse
membership includes employers; insurers; governmental
workers’ compensation costs in Illinois, accounting for 44
percent of all paid dollars for claims originating in 2013, entities; managed care companies; health care providers;
and 49 percent of all paid dollars dating back to claims insurance regulators; state labor organizations; and state
with injuries in 2011 and payments by 2016,” said Tanabe. administrative
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aaron@aiu-usa.com

june 2017 insight 11