Insight, analysis & opinion from Joe Paduda


Illinois work comp reform – the impossible is reality

Late last night the Illinois House passed major work comp reform legislation, legislation that will dramatically affect workers’ comp providers, significantly reduce medical cost, and tighten up several key issues related to claim duration.
While most are focusing on the 30% reduction to the fee schedule (currently set at 80% of the 90th percentile of Ingenix’ UCR), the major change will likely be the institution of employer direction in a state long tied to employee freedom of choice. The bill – HB1698 – allows employers to use medical networks that are approved by the state Department of Insurance, a change that will dramatically alter the provider landscape, greatly strengthening networks’ ability to contract at rates lower than the fee schedule. While the new law will allow employees to opt out of the network at the time of injury, they have to do so in writing.
Governor Pat Quinn will sign the legislation, which also passed the Senate – this time easily.
More news is here.
A synopsis of some of the main provisions is here. (note this appears to be a plaintiff attorney’s interpretation)

2 thoughts on “Illinois work comp reform – the impossible is reality”

  1. We still need to see exactly what was passed. I’m hearing there were some last-minute changes made. On the legislative web site, I see an amendment that reduced the fee schedule decrease to 10% instead of 30%. I don’t know if that amendment made the final bill yet.

  2. Mark,
    I’m really not seeing where you found the amendment for the 10% cut? I know there was a lot of disagreement by the republicans to go for the 30% cut because they have figured it out that addressing causation would have saved IL much more money than cutting the provider fees by 30%!

Comments are closed.

Joe Paduda is the principal of Health Strategy Associates




A national consulting firm specializing in managed care for workers’ compensation, group health and auto, and health care cost containment. We serve insurers, employers and health care providers.



© Joe Paduda 2018. We encourage links to any material on this page. Fair use excerpts of material written by Joe Paduda may be used with attribution to Joe Paduda, Managed Care Matters.

Note: Some material on this page may be excerpted from other sources. In such cases, copyright is retained by the respective authors of those sources.