Bill Text: IL HB0412 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Workers' Compensation Act. Creates the Workers' Compensation Transparency Task Force. Provides that the Task Force shall collect and review information and data on the effects of the changes in workers' compensation law enacted by the General Assembly and that the purpose of the collection and review of information is to make as transparent as possible all information relating to the medical treatment, legal representation, and benefits paid to injured workers in this State. Repeals the language creating the Task Force on January 1, 2022. Repeals certain requirements relating to reports and promulgation of rules concerning workers' compensation insurance by the Department of Insurance on January 1, 2022. Effective immediately.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB0412 Detail]

Download: Illinois-2017-HB0412-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB0412 Introduced , by Rep. David B. Reis SYNOPSIS AS INTRODUCED:
820 ILCS 305/29.2
820 ILCS 305/29.3 new
Amends the Workers' Compensation Act. Creates the Workers' Compensation Transparency Task Force. Provides that the Task Force shall collect and review information and data on the effects of the changes in workers' compensation law enacted by the General Assembly and that the purpose of the collection and review of information is to make as transparent as possible all information relating to the medical treatment, legal representation, and benefits paid to injured workers in this State. Repeals the language creating the Task Force on January 1, 2022. Repeals certain requirements relating to reports and promulgation of rules concerning workers' compensation insurance by the Department of Insurance on January 1, 2022. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Workers' Compensation Act is amended by
changing Section 29.2 and adding Section 29.3 as follows:
(820 ILCS 305/29.2)
Sec. 29.2. Insurance oversight.
(a) The Department of Insurance shall annually submit to
the Governor, the Chairman of the Commission, the President of
the Senate, the Speaker of the House of Representatives, the
Minority Leader of the Senate, and the Minority Leader of the
House of Representatives a written report that details the
state of the workers' compensation insurance market in
Illinois. The report shall be completed by April 1 of each
year, beginning in 2012, or later if necessary data or analyses
are only available to the Department at a later date. The
report shall be posted on the Department of Insurance's
Internet website. Information to be included in the report
shall be for the preceding calendar year. The report shall
include, at a minimum, the following:
(1) Gross premiums collected by workers' compensation
carriers in Illinois and the national rank of Illinois
based on premium volume.

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(2) The number of insurance companies actively engaged
in Illinois in the workers' compensation insurance market,
including both holding companies and subsidiaries or
affiliates, and the national rank of Illinois based on
number of competing insurers.
(3) The total number of insured participants in the
Illinois workers' compensation assigned risk insurance
pool, and the size of the assigned risk pool as a
proportion of the total Illinois workers' compensation
insurance market.
(4) The advisory organization premium rate for
workers' compensation insurance in Illinois for the
previous year.
(5) The advisory organization prescribed assigned risk
pool premium rate.
(6) The total amount of indemnity payments made by
workers' compensation insurers in Illinois.
(7) The total amount of medical payments made by
workers' compensation insurers in Illinois, and the
national rank of Illinois based on average cost of medical
claims per injured worker.
(8) The gross profitability of workers' compensation
insurers in Illinois, and the national rank of Illinois
based on profitability of workers' compensation insurers.
(9) The loss ratio of workers' compensation insurers in
Illinois and the national rank of Illinois based on the

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loss ratio of workers' compensation insurers. For purposes
of this loss ratio calculation, the denominator shall
include all premiums and other fees collected by workers'
compensation insurers and the numerator shall include the
total amount paid by the insurer for care or compensation
to injured workers.
(10) The growth of total paid indemnity benefits by
temporary total disability, scheduled and non-scheduled
permanent partial disability, and total disability.
(11) The number of injured workers receiving wage loss
differential awards and the average wage loss differential
award payout.
(12) Illinois' rank, relative to other states, for:
(i) the maximum and minimum temporary total
disability benefit level;
(ii) the maximum and minimum scheduled and
non-scheduled permanent partial disability benefit
level;
(iii) the maximum and minimum total disability
benefit level; and
(iv) the maximum and minimum death benefit level.
(13) The aggregate growth of medical benefit payout by
non-hospital providers and hospitals.
(14) The aggregate growth of medical utilization for
the top 10 most common injuries to specific body parts by
non-hospital providers and hospitals.

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(15) The percentage of injured workers filing claims at
the Commission that are represented by an attorney.
(16) The total amount paid by injured workers for
attorney representation.
(b) The Director of Insurance shall promulgate rules
requiring each insurer licensed to write workers' compensation
coverage in the State to record and report the following
information on an aggregate basis to the Department of
Insurance before March 1 of each year, relating to claims in
the State opened within the prior calendar year:
(1) The number of claims opened.
(2) The number of reported medical only claims.
(3) The number of contested claims.
(4) The number of claims for which the employee has
attorney representation.
(5) The number of claims with lost time and the number
of claims for which temporary total disability was paid.
(6) The number of claim adjusters employed to adjust
workers' compensation claims.
(7) The number of claims for which temporary total
disability was not paid within 14 days from the first full
day off, regardless of reason.
(8) The number of medical bills paid 60 days or later
from date of service and the average days paid on those
paid after 60 days for the previous calendar year.
(9) The number of claims in which in-house defense

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counsel participated, and the total amount spent on
in-house legal services.
(10) The number of claims in which outside defense
counsel participated, and the total amount paid to outside
defense counsel.
(11) The total amount billed to employers for bill
review.
(12) The total amount billed to employers for fee
schedule savings.
(13) The total amount charged to employers for any and
all managed care fees.
(14) The number of claims involving in-house medical
nurse case management, and the total amount spent on
in-house medical nurse case management.
(15) The number of claims involving outside medical
nurse case management, and the total amount paid for
outside medical nurse case management.
(16) The total amount paid for Independent Medical
exams.
(17) The total amount spent on in-house Utilization
Review for the previous calendar year.
(18) The total amount paid for outside Utilization
Review for the previous calendar year.
The Department shall make the submitted information
publicly available on the Department's Internet website or such
other media as appropriate in a form useful for consumers.

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(c) This Section is repealed on January 1, 2022.
(Source: P.A. 97-18, eff. 6-28-11.)
(820 ILCS 305/29.3 new)
Sec. 29.3. Workers' Compensation Transparency Task Force.
(a) There is created the Workers' Compensation
Transparency Task Force consisting of the following members:
(1) The Director of Insurance or his or her designee.
(2) The Chairman of the Illinois Workers' Compensation
Commission or his or her designee.
(3) One member of the House of Representatives
appointed by the Speaker of the House of Representatives.
(4) One member of the House of Representatives
appointed by the Minority Leader of the House of
Representatives.
(5) One member of the Senate appointed by the President
of the Senate.
(6) One member of the Senate appointed by the Minority
Leader of the Senate.
(b) The Task Force shall collect and review information and
data on the effects of the changes in workers' compensation law
enacted by the General Assembly. The purpose of the collection
and review of information under this Section is to make as
transparent as possible all information relating to the medical
treatment, legal representation, and benefits paid to injured
workers in this State.

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(c) In order to enable the Task Force to complete its
purpose, insurers, advisory organizations, medical providers,
and attorneys involved in the provision of services to persons
covered under the workers' compensation laws of this State
shall report data and information to the Task Force on an
annual basis.
(d) Insurers and advisory organizations shall report to the
Task Force the information required to be reported under
Section 29.2.
(e) Medical providers and attorneys shall report workers'
compensation information including, but not limited to, the
following:
(1) Gross revenue attributable to workers'
compensation care and representation of injured workers.
(2) Expenses incurred in the medical treatment and
representation of injured workers.
(3) The number of patients treated and clients
represented with respect to workers' compensation claims.
(4) The time and resources expended on the legal
representation and medical treatment of injured workers.
(5) Complaints registered with the licensing authority
for medical providers and attorneys related to the
treatment or representation of injured workers relating to
the workers' compensation laws.
(6) Profits made as a result of the representation or
medical treatment provided to injured workers.

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(7) Any additional information that is determined by
the Task Force to be necessary for the effective analysis
of the effect of changes in workers' compensation laws.
(f) The Task Force shall report its findings to the
Governor and General Assembly by March 31 of each year. The
findings in the report shall be based upon the information
reported to the Task Force by December 31 of the year preceding
the date of the report.
(g) The Task Force shall end its collection of information
on December 31, 2021 and issue its final report no later than
March 31, 2022.
(h) A person or entity that fails to comply with the
reporting requirements of this Section is subject to a civil
penalty of $100 per day for each category of information
required to be reported up to a maximum of $10,000. The
Attorney General may bring an action to enforce the penalty
authorized under this subsection. If a person or entity incurs
more than $10,000 in penalties under this subsection, the
license of the person or entity may be suspended.
(i) This Section is repealed on January 1, 2022.
Section 99. Effective date. This Act takes effect upon
becoming law.