Full Text of HR0172 99th General Assembly
HR0172 99TH GENERAL ASSEMBLY |
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| 1 | | HOUSE RESOLUTION
| 2 | | WHEREAS, High injury and death rates related to the | 3 | | Industrial Revolution spurred dissatisfaction
among employees | 4 | | and employers; and | 5 | | WHEREAS, The first modern workers' compensation law | 6 | | originated in Germany in 1884, whereby a
compulsory system of | 7 | | accident insurance was created for high-risk occupations, and | 8 | | Wisconsin was the first state to enact a comprehensive workers' | 9 | | compensation law, with
every state following by 1948; and | 10 | | WHEREAS, In 1909, the Cherry Mining Diaster killed 259 men | 11 | | and boys, inciting public outrage toward the working conditions | 12 | | and compensation for workers harmed on the job, and in response | 13 | | to this tragedy, the Illinois General Assembly enacted the | 14 | | Illinois' Workers'
Compensation Act in 1911; and | 15 | | WHEREAS, This Act represented a "grand bargain" between | 16 | | labor and employers, establishing a "no-fault"
system to | 17 | | provide for swift and fair compensation for injuries occurring | 18 | | in the workplace in
exchange for workers' forfeiture of rights | 19 | | to common law actions against their employers; this "no-fault" | 20 | | system shields employers from being subjected to litigation | 21 | | brought by injured
employees and protects employers from costs | 22 | | for pain and suffering, punitive damages, and other
remedies |
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| 1 | | that are available under common law; and | 2 | | WHEREAS, Workers' compensation insurance is a lifeline for | 3 | | injured employees who, despite their injuries, must
continue to | 4 | | provide for themselves and their families; and | 5 | | WHEREAS, Over 99% of Illinois' employers carry insurance to | 6 | | cover the
costs associated with workers' compensation claims; | 7 | | and | 8 | | WHEREAS, The Illinois' Workers' Compensation Act was | 9 | | amended in 2011, forcing injured workers to
surrender | 10 | | significant benefits, with the intent to reduce premium costs | 11 | | that Illinois' employers pay for
their workers' compensation | 12 | | insurance, and as a result, employers have netted $315 million | 13 | | in savings as a result of the 2011 legislation; and | 14 | | WHEREAS, The Illinois Workers' Compensation Commission | 15 | | noted in its 2013 Fiscal Year annual report
that the 2011 | 16 | | legislation "produced demonstrable improvements to the | 17 | | workers' compensation
environment in Illinois"; and | 18 | | WHEREAS, According to a study published by the Oregon | 19 | | Department of Consumer and Business
Services, Illinois has | 20 | | experienced a 24% reduction in workers' compensation rates | 21 | | between
2013 and 2014, representing the steepest drop in the |
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| 1 | | nation; the National Council on Compensation Insurance, the | 2 | | insurance industry rate-making
agency upon which Illinois | 3 | | relies for rate recommendations, has recommended premium rate | 4 | | reductions
of nearly 20% since 2011; a 20% premium rate | 5 | | reduction, if fully implemented by insurers, would result in
| 6 | | premium savings to Illinois employers of nearly $1 billion; and | 7 | | WHEREAS, Illinois has a robust workers' compensation | 8 | | insurance industry, with 330 companies offering
insurance to | 9 | | employers, representing the second-most profitable line of | 10 | | insurance that is marketed; workers' compensation insurers do | 11 | | not disclose their rate-making formulas; and
| 12 | | WHEREAS, Annual workers' compensation claims in Illinois | 13 | | have dropped from 62,000 in 2003 to 42,500
in 2013, | 14 | | representing a 31% decrease in a 10-year period; and
| 15 | | WHEREAS, Illinois wages substantially outpace those of | 16 | | other Midwestern states; workers' compensation indemnity | 17 | | benefits directly correlate to wages earned and are
responsible | 18 | | for 50% of workers' compensation costs; and
| 19 | | WHEREAS, High wages are desirable for the State and are one | 20 | | of the strongest measurable indicators of
economic vitality; | 21 | | and
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| 1 | | WHEREAS, Further reductions in benefits for injured | 2 | | employees would create additional harm to those
employees and | 3 | | their families, placing them in deeper financial peril and | 4 | | possible ruin; such financial peril results in a cost-shift to | 5 | | government-funded safety nets and entitlement
programs; and
| 6 | | WHEREAS, Illinois has made great strides in its effort to | 7 | | reduce costs within the workers' compensation
system; | 8 | | therefore, be it
| 9 | | RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE | 10 | | NINETY-NINTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we | 11 | | value the workforce of Illinois and recognize that labor is the | 12 | | engine which drives the State's economy; and be it further
| 13 | | RESOLVED, That injured employees, who have provided their | 14 | | labor and made sacrifices for the
betterment of the State and | 15 | | its economy, should not be threatened or confronted with | 16 | | additional
benefit reductions through further changes to the | 17 | | Illinois Workers' Compensation Act.
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