On September 1, 2011, several changes were made to Illinois workers compensation law. These changes will reduce claim cost and were welcomed by the employer community – even though many didn’t feel they went far enough.
Reduced Medical Costs
Physician fees were reduced by 30%. This is a large decrease and while I appreciate the direction, I am concerned that we have reduced the pay to treating doctors too much.
Carpal Tunnel Payments
Permanency awards for carpal tunnel (which can be very large) injuries have been a source of concern for employers for decades. The payout amount was previously so large that some believed that one case often spawned many others in a workplace – as employees saw what the injured worker got for their claim they “developed” carpal tunnel. In most cases now, the cost will be capped at 15% loss of the hand.
Intoxication Related Injuries
Make sure you have a good post-accident alcohol testing process set up with a local medical organization! Worker’s injured while intoxicated will see their claims denied.
The best way to reduce workers compensation costs is to keep employees healthy. Generally, companies get really serious about safety, when their WC mod and premiums shoots through the roof. Start 2012 off with a commitment to better job design and safety training. The costs involved are often slight. Longer-term you are doing the right thing and reducing your total cost.
