Governor Quinn Signs Workers’ Compensation Legislation into Law
With most of the media stories focusing on the verdict in former Governor Blagojevich’s trial; you may have missed some of the governor’s recent signatures to legislation. On Tuesday, the changes to the workers’ compensation system became official. HB1698 becomes a Public Act which makes various changes to the workers’ compensation system regarding the medical fee schedule and AMA guidelines. You can find our analysis of the legislation here. Miss last week’s article on the Attorney General’s opinion of the bill? Click here to read last week’s Government Affairs Report.
A smaller known bill that will affect Chamber members personally is the new seat belt law. Previously, only passengers in the front of a vehicle were required to wear their seat belts. Starting July 1, all passengers in a vehicle, including the backseat, must wear their seatbelts. Illinois becomes the 15th state to require this of all passengers.
Governor Slashes Medicaid, Education Funding Before Approving New Budget
The Governor signed off on the state’s budget late yesterday- just hours before the new fiscal year took effect today – and not before he used his line-item veto powers to reduce spending by more than $370 million. Nearly 75% of the cuts come from a single reduction to the Medicaid program; a move that Governor Quinn claims has been used to put pressure on Illinois hospitals to negotiate rate cuts and Medicaid reforms.
The Governor also carved out funding for transportation reimbursement for K-12 education and zeroed out funding for regional superintendents. The remaining line-item vetoes related to areas of the budget that the Governor claims were double-appropriated throughout the various budget bills that the General Assembly sent him in May. For a full list of the Governor’s line-item reductions, please click HERE.
All of the cuts enacted by Governor Quinn were cuts he touted in his own proposed budget presented in February, including a 6% rate cut for Medicaid providers, eliminating funding for regional superintendents, and reduced transportation dollars for K-12 education. Those cuts were ultimately rejected by the General Assembly due to stark opposition, particularly regarding the 6% rate cut for Medicaid providers. Although the Governor’s line-item veto reduces Medicaid funding even further, the Governor does not have any statutory authority to reduce rates. Medicaid reimbursements to providers, therefore, will likely take longer and could get pushed into the next fiscal year, adding up to $1 billion in new Medicaid liabilities for FY 2013.
The General Assembly can override the Governor’s line-item vetoes, but are not currently scheduled to return to Springfield until the fall veto session gets underway in late October.
Click on the bills below to view the Governor’s specific line-time and reduction veto action:
HB 117
HB 123
HB 132
HB 327
HB 3717
Illinois Chamber Weighs in on New Health Reform Employer Penaltie
Under the Affordable Care Act (ACA), employers with 50 or more full-time employees that do not offer “affordable” health coverage to their full-time employees may be assessed a penalty. These “employer shared responsibility” provisions included in the federal health reform law take effect in 2014 and specifically exempt employers that have fewer than 50 full-time employees. The determination of an employers’ full-time employee population and the application of the penalty assessment in 2014, however, represents one of the most critical ACA regulatory decisions for employers. Federal regulations have yet to determine exactly how a full-time employee is defined or lay out the standards that will be used to determine “affordable” coverage. These forthcoming regulations will have not only have a profound impact on employer benefit decisions, but also hiring and firing decisions in the future. On June 17, the Illinois Chamber of Commerce submitted comments to the IRS in response to a request for comment on these provisions in an effort to help shape future regulations that are sensitive to the need for flexibility and easing the significant burden these provisions could easily impose on smaller and mid-size employers. To view the Illinois Chamber’s response, please click here. For more information on how ACA could impact your business and how you can make your voice heard throughout this extensive regulatory process, please contact Laura Minzer at lminzer@ilchamber.org.
Illinois’ Per Capita Debt is 3rd Worst in Nation
According to the Institute for Truth in Accounting, each Illinois citizen owes $26,800 for combined total state debt. The Institute ranks Illinois’s per-capita debt as the third highest of all 50 states; falling behind Connecticut and New Jersey. The ranking includes the pension and retiree health care obligations. See the data here.
Have a safe and happy 4th of July holiday!
If you have questions about the Government Affairs Report, contact Sarah Frye at sfrye@ilchamber.org. Do not reply to this email.
