A new Illinois law could reverse the state’s gains in workers’ compensation reform, according to a civil justice watchdog. House Bill 5228, signed by Gov. J.B. Pritzker on Aug. 7, adds a new surcharge on successful, profitable workers’ compensation insurance companies and restricts potential liability on employers.

Concerns Over Profit Penalty

Phil Melin, executive director of Illinois Citizens Against Lawsuit Abuse, pointed to two issues with the legislation. The surcharge would be $7 million in total and would increase 3.5% each year, with more profitable companies paying a higher portion of the sum. Melin said charging a profit penalty could disincentivize companies from doing business in Illinois.

Melin also expressed concern that the new law disincentivizes one of the ways for employers to question expensive or unnecessary treatments. It creates more procedural hurdles for employers to challenge questionable determinations by workers, he said.

Impact on Business

The Illinois AFL-CIO and the Illinois Trial Lawyers Association filed witness slips supporting HB 5228. Melin said the state became more competitive after then-Gov. Pat Quinn signed successful workers’ comp reform in 2011. However, he believes the new law could reverse some of those gains.

Original reporting: KTBS 3 (Shreveport) — read the source article.