Sente Backs Reforms to Lower Workers’ Compensation Premiums

SPRINGFIELD, Ill. – Small businesses would receive real relief from staggering workers’ compensation costs under legislation cosponsored by State Rep. Carol Sente, D-Vernon Hills, creating a new non-profit insurer to instill more competition in the insurance market.

“As a small-business owner who has paid workers’ compensation premiums, I know how costly these premiums can be to employers,” Sente said. “That is why I am determined to lower costs without jeopardizing worker safety, and to make sure those savings are passed onto employers.”

The Sente-backed House Bill 2622 creates a not-for-profit insurance provider named the “Illinois Employers Mutual Insurance Company” that would sell workers’ compensation insurance to Illinois businesses. The insurer would offer the same quality insurance as for-profit companies, but would commit to deliver the best value for businesses rather than turning a profit for investors. The not-for-profit established under this legislation is similar to state-chartered insurance companies in 20 other states, including Missouri, Kentucky, California and Texas.

Since Illinois enacted workers’ compensation reforms in 2011, costs, injuries and claims have all dropped significantly, but instead of passing the savings on to businesses, insurance companies have padded their profits. To further improve the system, Sente has also supported reforms, like House Bill 2525, that help ensure that for-profit insurance companies pass savings from workers’ compensation reform on to Illinois employers.

“Past workers’ compensation reforms have lowered costs significantly, but those saving were not passed onto employers or employees,” Sente continued. “If elected officials are serious about providing relief to businesses in Illinois, we have to get insurance companies to pass on these savings to job-creators.”