WCLA MCLE

• FY2008 Annual Report: Illinois Workers’ Compensation Commission & 2008 Annual Report: Workers’ Compensation Fraud Unit

• Friday August 7, 2009• 10:30 AM to 11:30 AM• WCLA Annual Golf Outing, Oakbrook, IL• 1 hour general MCLE credit

FYO8 Annual ReportIWCC

• “The perception of IL workers’ compensation costs is often different than the reality.”(2)

• “In FY08, the Insurance Compliance Unit collected $1.8 million in fines from 66 uninsured employers with 900 workers…”(2)

• 250,000 injuries/80,000 Form 45’s/60,000 cases (5)• NCCI Advisory rate 1/1/09 3.5% increase (CPI 3.8) (8)• 100,000 telephone calls per year (11)• FY08 57,515 cases filed (40% Cook County; 5% Dupage) (13)• SAWW $883.86 on 6/30/08 (14)• 95,000 cases pending Arbitration, red-line decreased 13%(17)• 3594 Arbitration decisions; 1777 Commission decisions (17)

FYO8 Annual ReportIWCC

• Commission Review: Petitioner wins 24%; Respondent wins 27% (18)

• Months to issue Arbitration decision: 34 months from filing of Application? (18)

• Penalty cases: Arbitration, 10% of expedited and 2% regular; Commission, 5% expedited and 2% regular (20)

• Benefit cost rates 3% lower than national average; WC insurance rates 8% higher than national average despite wages 20% higher (22)

2008 Annual Report Workers’ Compensation Fraud Unit

• 58 cases referred for prosecution (9)• 2 Cook County convictions (12)• Total fraud: $6,486,771; $4,333,405 or 2/3

Employer fraud (Exhibit F)• Reasons for referrals (Exhibit H)