Tuesday, September 07, 2010
December 2008 issue - Vol.9, No.3

   We Mean Business. Illinois Business.
 
 

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...continued Closing fraud loopholes would decrease Illinois’ workers’ comp costs

occurring nationally.”
   Shattuck says the often-heard argument that Illinois can’t compete with Indiana on a labor basis because Indiana doesn’t pay it workers as well does not hold water. “In Indiana, they’re second in terms of comparative costs (for workers’ comp) and they’re ranked 15th in terms of the amount of benefits paid out,” he said.

   Fraud is among the key reasons Illinois’ workers’ comp system is so costly to employers, according to Shattuck. “In 2005, we put some fraud provisions in place, but Gov. (Rod) Blagojevich cut them from $900,000 to $500,000,” he said. “Added to that, we’re having trouble with states’ attorneys actually prosecuting workers’ compensation fraud. They’ll go after a retail shoplifting case involving a couple hundred dollars, but on workers’ comp cases involving tens of thousands of dollars, many states’ attorneys are reluctant to prosecute…and that really

president/ceo: Kerry Smith
email: ksmith@ibjonline.com

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