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92_HB2192 LRB9201790WHpc 1 AN ACT in relation to workplace injuries and diseases. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Workers' Compensation Act is amended by 5 changing Sections 8, 16, and 16a and adding Section 8a as 6 follows: 7 (820 ILCS 305/8) (from Ch. 48, par. 138.8) 8 Sec. 8. The amount of compensation which shall be paid 9 to the employee for an accidental injury not resulting in 10 death is set forth in this Section.:11 (a) The employer shall provide and pay the lesser of the 12 health care provider's actual charges or the usual and 13 customary charges incurred for allthenecessary first aid, 14 medical and surgical services, and all necessary medical, 15 surgical and hospital services thereafter incurred, limited, 16 however, to that which is reasonably required to cure or 17 relieve from the effects of the accidental injury. The usual 18 and customary charges under this Act shall be those 19 established pursuant to paragraphs (5) and (6) of this 20 subsection (a). Charges for procedures or services related to 21 a claim under this Act shall not exceed charges to other 22 non-workers' compensation third party payors for those 23 procedures or services, exclusive of charges pursuant to 24 negotiation, contract, or federal or State laws or 25 regulations. The employer shall also pay for treatment, 26 instruction and training necessary for the physical, mental 27 and vocational rehabilitation of the employee, including all 28 maintenance costs and expenses incidental thereto. If as a 29 result of the injury the employee is unable to be 30 self-sufficient the employer shall further pay for such 31 maintenance or institutional care as shall be required. -2- LRB9201790WHpc 1 Nothing in this Section shall preclude employers and health 2 care providers from agreeing to and utilizing alternative 3 reimbursement methods or schedules agreeable to both, 4 provided that any alternative reimbursement method shall be 5 set forth in a written contract or other written agreement 6 signed by the parties. 7 (1) The employee may at any time elect to secure 8 his own physician, surgeon and hospital services at the 9 employer's expense, or, 10 (2) Upon agreement between the employer and the 11 employees, or the employees' exclusive representative, 12 and subject to the approval of the Industrial Commission, 13 the employer shall maintain a list of physicians, to be 14 known as a Panel of Physicians, who are accessible to the 15 employees. The employer shall post this list in a place 16 or places easily accessible to his employees. The 17 employee shall have the right to make an alternative 18 choice of physician from such Panel if he is not 19 satisfied with the physician first selected. If, due to 20 the nature of the injury or its occurrence away from the 21 employer's place of business, the employee is unable to 22 make a selection from the Panel, the selection process 23 from the Panel shall not apply. The physician selected 24 from the Panel may arrange for any consultation, referral 25 or other specialized medical services outside the Panel 26 at the employer's expense. Provided that, in the event 27 the Commission shall find that a doctor selected by the 28 employee is rendering improper or inadequate care, the 29 Commission may order the employee to select another 30 doctor certified or qualified in the medical field for 31 which treatment is required. If the employee refuses to 32 make such change the Commission may relieve the employer 33 of his obligation to pay the doctor's charges from the 34 date of refusal to the date of compliance. -3- LRB9201790WHpc 1 (3) The Commission shall establish rules for 2 processing payments to health care providers in an 3 expeditious and timely manner including designating the 4 proper payor to be billed for health care benefits 5 related to a claim. 6 Health care providers may seek payment from 7 employees until the health care provider is notified in 8 writing, on a uniform form adopted by rule by the 9 Industrial Commission, by the employer or the employee 10 that the services concern a claim under the Act. This 11 notification shall specifically identify the party to 12 whom bills for services must be submitted. The health 13 care provider must then within 60 days resubmit 14 previously submitted bills and then subsequent bills for 15 services exclusively to the party to which bills for 16 services must be submitted. Nothing in this Act shall 17 prevent health care providers from notifying employees of 18 the bills for services consistent with the limitations of 19 this Section. 20 (A) Nondisputed health care payments: 21 (i) The employer shall make payments or 22 cause payments to be made to health care 23 providers within 60 days after the receipt by 24 the employer of due proof of loss. For the 25 purpose of this Section, "due proof of loss" 26 consists of a receipt of an itemized bill with 27 a demand for payment and a complete copy of the 28 patient records related to the claim and those 29 charges. The employer shall notify the health 30 care provider of any failure to provide 31 sufficient documentation for a due proof of 32 loss within 60 days after receipt of the claim 33 for health services. Subsequent billings shall 34 provide updated patient records from the date -4- LRB9201790WHpc 1 last provided. Nothing in this Act shall 2 prohibit the employer from waiving the 3 requirement that patient record updates shall 4 accompany billings. 5 (ii) If the employer fails, neglects, or 6 refuses, without good and just cause, to pay 7 the health care provider charges within 60 8 days, the employer shall pay interest on the 9 unpaid balance of fees at a rate of 7%. The 10 interest shall begin to accrue on the 61st day 11 following receipt of due proof of loss and 12 shall stop accruing on the day before tender of 13 payment for the amount paid. The employer shall 14 pay any required interest charges within 30 15 days of payment of other health care provider 16 charges. 17 (B) Disputed health care payments. 18 (i) Any disputes concerning an employer's 19 neglect, failure or refusal to pay the usual 20 and customary charges of health care providers 21 services under subsection 8(a) shall be 22 resolved in a separate proceeding between the 23 employer and the health care provider. This 24 separate proceeding may take place concurrently 25 with any proceeding concerning a claim for 26 benefits under this Act. The arbitrator may 27 bifurcate any proceeding, but resolution of a 28 payment dispute shall not be decided prior to a 29 determination of the compensability of the 30 claim. The employer shall provide the health 31 care provider and the employee with written 32 notice of the specific reasons for non-payment 33 or payment of less than submitted charges 34 within 60 days of receipt of due proof of loss. -5- LRB9201790WHpc 1 Any dispute shall be resolved in accordance 2 with the rules which shall include, but not be 3 limited to, the employers obligation to provide 4 a written notice and the health care providers 5 obligation to provide a written explanation of 6 a billing and an affidavit concerning the 7 health care providers charges to other 8 non-workers' compensation third party 9 non-governmental payors. The employee shall 10 have a duty to cooperate in any process or 11 proceeding. The provider of any services, 12 treatment, care, instruction, training, or 13 appliances or other tangible things for which 14 an employer is responsible for payment under 15 this subsection (a) is bound by charges or 16 payments ordered by the Industrial Commission. 17 (ii) In addition to any remedies 18 available to an employee under the Act, if the 19 Commission finds that an employer has 20 neglected, failed or refused to pay or cause to 21 be paid the usual and customary charges by a 22 health care provider, under subsection 8(a) 23 without good and just cause, the employer shall 24 pay interest pursuant to subsection (3)(A)(ii) 25 and the provider's attorneys fees and other 26 costs related to the proceeding before the 27 Commission under this Section. 28 (iii) The Commission shall adopt 29 procedural rules for these proceedings which 30 are consistent with current practices under the 31 Act and provide for minimal delay or 32 inconvenience. 33 (C) The employee and any health care providers 34 may, but are not required to, be represented by the -6- LRB9201790WHpc 1 same attorney. 2 (D) Any fees for undisputed health care 3 provider services shall be paid directly to the 4 health care provider. The employee shall not receive 5 payments owed to health care providers. In the case 6 of an award or settlement, in whole or in part, for 7 disputed health care provider payments, payment may 8 be made to the health care provider or in cases in 9 which the health care provider is represented by an 10 attorney, the payments shall be made to the attorney 11 involved in the name of the attorney and health care 12 providers. The attorney shall disburse the funds to 13 the health care providers involved in accordance 14 with the award or settlement. 15 (E) In addition to compensation for health 16 care services, health care providers shall be 17 separately reimbursed by the requesting party for 18 requested records, reports, letters, testimony, or 19 depositions for all reasonable expenses incurred in 20 connection with provision of this information 21 pursuant to Section 16. 22 (F) Health care provider service payments may 23 only be denied by the employer upon a finding that: 24 (1) the service or procedure was not 25 related to an accidental injury; or 26 (2) the service or procedure was not 27 necessary or reasonably required to cure or 28 provide relief from the effects of the 29 accidental injury. 30 A finding that a health care service was not 31 necessary or reasonably required to cure or provide 32 relief from the effects of the accidental injury shall be 33 based on clinical criteria which are: 34 (1) developed with the input from -7- LRB9201790WHpc 1 appropriate actively practicing physicians; and 2 (2) based on sound clinical principles 3 and processes. 4 Any such finding shall be accompanied by the 5 clinical criteria used as the basis for such finding. 6 (4) Every hospital, physician, surgeon or other 7 person rendering treatment or services in accordance with 8 the provisions of this Section shall upon written request 9 furnish full and complete reports thereof to, and permit 10 their records to be copied by, the employer, the employee 11 or his dependents, as the case may be, or any other party 12 to any proceeding for compensation before the Commission, 13 or their attorneys. 14 (5) Charges of health care providers shall be 15 compensated at actual charges not to exceed the 85th 16 percentile of the usual and customary charges as 17 determined by this Section. 18 The Industrial Commission shall determine the usual 19 and customary charges of health care providers, except 20 hospital charges under paragraph (6), in each geographic 21 area of the State by adopting rules designating a 22 national database that includes health care provider 23 charges, except hospital charges, information from 24 Illinois with a minimum of 12,000,000 Illinois line item 25 charges, excluding charges which are discounted by 26 contract, law, or regulation, and which makes these 27 charges available by geozip or any smaller geographic 28 unit in Illinois. The usual and customary charges shall 29 be as current as possible with no charge data being older 30 than 24 months and shall be updated at least every 6 31 months. The data shall in no way identify or tend to 32 identify any patient, employer, or health care provider. 33 Usual and customary charge determinations shall be 34 available electronically to the Industrial Commission -8- LRB9201790WHpc 1 every 6 months, and beginning July 1, 2003. 2 As used in this Section, "geozip" means a group of 3 one or more three-digit zip codes based on data 4 similarities, geographical similarities, and frequencies. 5 A "geozip" does not cross state boundaries. As used in 6 this Section, "three-digit zip code" means a geographic 7 area in which all zip codes have the same first 3 digits. 8 Except as otherwise provided in this Section 8a, no 9 action shall be commenced or maintained in a court of 10 this State by or on behalf of the above mentioned health 11 care providers nor shall those health care providers 12 pursue the payment of a bill individually or through a 13 collection agency or credit reporting bureau against an 14 employee for the collection of charges for services 15 incurred for a claim covered or alleged to be covered 16 under this Act until resolution by the Industrial 17 Commission. Health care providers may bill an employee 18 when a claim is not found to be covered under the Act. 19 (6) On or after October 1, 2002, the Industrial 20 Commission shall determine the usual and customary 21 payments for Illinois hospitals within three-digit zip 22 code areas by adopting rules designating a database or 23 databases and establishing the usual and customary 24 payments pursuant to this paragraph (6). 25 The database or databases used to establish hospital 26 usual and customary payments shall include Illinois 27 hospital inpatient charge data reflecting total 28 discharges within the State and Illinois hospital 29 outpatient charge data with a minimum of 12,000,000 30 records. The database or databases shall exclude data 31 from tertiary teaching hospitals, rehabilitation 32 hospitals, psychiatric hospitals, and trauma centers. The 33 data shall exclude charges which are discounted by 34 contract, law, or regulation, and shall be available by -9- LRB9201790WHpc 1 three-digit zip code areas. The data shall reflect 2 hospital line item charges. As used in this paragraph 3 (6), "line item charge" means the charge for each revenue 4 code submitted by hospitals on the uniform hospital 5 billing form required by Section 4-2 of the Illinois 6 Health Finance Reform Act. The data shall in no way 7 identify or tend to identify any patient, employer, 8 health care provider, or hospital facility. Hospital 9 charge data shall be as current as possible, with no 10 charge data being older than 24 months, and shall be 11 updated every 6 months. 12 The usual and customary payment for hospital 13 procedures, treatments, or services shall be established 14 for each line item charge at the 85th percentile of 15 charges for hospitals within the same three-digit zip 16 code area. The charge data for inpatient and outpatient 17 services shall be grouped or referenced by line item 18 charges or, where appropriate and available, by CPT code. 19 For inpatient services, line item charges shall be 20 determined per patient day, as appropriate. Nothing 21 herein shall prohibit the payment of outpatient services 22 by CPT code. Usual and customary payment determinations 23 for hospital inpatient and outpatient services shall be 24 published electronically by the Industrial Commission 25 every 6 months starting July 1, 2003. The usual and 26 customary payment limitations under this Act shall not 27 apply to hospitals located in three-digit zip code areas 28 that contain fewer than 20 hospitals. Nothing in this Act 29 shall prohibit a hospital and employer or insurer from 30 negotiating and agreeing on a level of payment for 31 individual bills or charges that differs from the usual 32 and customary payment established under this Act, 33 provided that such agreement is documented in writing, 34 electronically, or by another mutually agreed method. -10- LRB9201790WHpc 1 Hospitals designated by the Department of Public 2 Health as tertiary teaching hospitals, rehabilitation 3 hospitals, psychiatric hospitals, or trauma centers shall 4 not be subject to the usual and customary payment 5 limitations under this Act; provided, however, that 6 charges for procedures or services related to a claim 7 under this Act rendered by such hospitals shall not 8 exceed their charges to non-workers' compensation third 9 party payors for those procedures or services. Charges of 10 tertiary teaching hospitals, rehabilitation hospitals, 11 psychiatric hospitals, and trauma centers shall not be 12 included in the database or databases designated by the 13 Industrial Commission. Any hospital no longer designated 14 a tertiary teaching hospital, rehabilitation hospital, 15 psychiatric hospital, or a trauma center by the Illinois 16 Department of Public Health shall be subject to the usual 17 and customary payment provisions under this Act within 30 18 days of receipt of notice of change of designation from 19 the Department of Public Health. 20 All hospitals, including tertiary teaching 21 hospitals, rehabilitation hospitals, psychiatric 22 hospitals, or trauma centers, shall be fully subject to 23 the provisions of paragraph 8(a)(3)(F). 24 Except as otherwise provided in this subsection 25 8(a), no action shall be commenced or maintained in a 26 court of this State by or on behalf of a hospital nor 27 shall a hospital pursue the payment of a bill 28 individually or through a collection agency or credit 29 reporting bureau against an employee for the collection 30 of charges for services incurred for a claim covered or 31 alleged to be covered under this Act until resolution by 32 the Industrial Commission. Hospitals may bill an employee 33 when a claim is not found to be covered under the Act. 34 (7)(i) No list of usual and customary charges of -11- LRB9201790WHpc 1 health care providers pursuant to paragraph (5) or of 2 hospitals pursuant to paragraph (6), and no update of 3 such a list, shall be established except by rule of the 4 Commission. Before any rule establishing usual and 5 customary charges becomes final, the Commission shall: 6 (a) Comply with all public notice and comment 7 requirements set forth in the Illinois 8 Administrative Procedure Act; 9 (b) Allow members of the public to review the 10 actual, underlying database upon which the list of 11 usual and customary charges in the proposed rule is 12 derived; 13 (c) Verify the validity, accuracy, and 14 timeliness of all usual and customary charges in the 15 proposed rule, and make available to the public 16 written explanation of why the charges are valid, 17 accurate, and timely. 18 For purposes of this paragraph, a "valid" usual and 19 customary charge is a charge that takes into 20 consideration only appropriate sources of data, and that 21 complies with the criteria for usual and customary 22 charges for health care providers as set forth in 23 paragraph (5) or for hospitals as set forth in paragraph 24 (6) with respect to minimum numbers of line items, 25 geographical sources and coverage, exclusions and 26 exemptions, and confidentialities. An "accurate" usual 27 and customary charge is a charge for which the compiled 28 data have been correctly interpreted in determining the 29 level of the charge. A "timely" usual and customary 30 charge is a charge that is as current as possible, with 31 no charge data being older than 24 months, and for which 32 6 or fewer months have elapsed since the latest update of 33 data. 34 (ii) The requirements of this paragraph (7) shall -12- LRB9201790WHpc 1 apply to all determinations of usual and customary 2 charges established by rule of the Commission as well as 3 to all updates of those determinations. 4 (iii) The Commission shall update usual and 5 customary charges at least every 6 months by emergency 6 rule. 7 (iv) The provisions of paragraphs (5) and (6) shall 8 not take effect unless and until the Commission has 9 complied with all of the requirements of this paragraph 10 (7). 11 (8) The payment of health care provider charges is 12 not compensation to extend the time for filing a claim 13 under this Act. The payment of the health care provider 14 charges by an employer or the employer's insurance 15 carrier, shall not constitute an admission of the 16 employer's liability to payment compensation or create 17 any obligation to pay health care provider charges. 18 (9) Interest paid under this Section shall not be 19 an admission of liability to pay compensation or to pay 20 any health care provider charges. 21 (10) The Industrial Commission shall implement 22 these amendments in the following manner: The physician 23 and health care provider database under paragraph (5) and 24 the hospital, in-patient and out-patient database under 25 paragraph (6) and a precise methodology for use shall be 26 adopted by rule no later than October 1, 2002. The 27 database usual and customary determination shall then be 28 published electronically by the Industrial Commission 29 every 6 months beginning July 1, 2003. The provisions of 30 paragraphs (5) and (6) shall become effective 30 days 31 after the Commission establishes a database by rule 32 pursuant to the requirement of paragraph (7). 33 (a-5) Notwithstanding the foregoing, the employer's 34 liability to pay for such medical services selected by the -13- LRB9201790WHpc 1 employee shall be limited to: 2 (1) all first aid and emergency treatment; plus 3 (2) all medical, surgical and hospital services 4 provided by the physician, surgeon or hospital initially 5 chosen by the employee or by any other physician, 6 consultant, expert, institution or other provider of 7 services recommended by said initial service provider or 8 any subsequent provider of medical services in the chain 9 of referrals from said initial service provider; plus 10 (3) all medical, surgical and hospital services 11 provided by any second physician, surgeon or hospital 12 subsequently chosen by the employee or by any other 13 physician, consultant, expert, institution or other 14 provider of services recommended by said second service 15 provider or any subsequent provider of medical services 16 in the chain of referrals from said second service 17 provider. Thereafter the employer shall select and pay 18 for all necessary medical, surgical and hospital 19 treatment and the employee may not select a provider of 20 medical services at the employer's expense unless the 21 employer agrees to such selection. At any time the 22 employee may obtain any medical treatment he desires at 23 his own expense. This paragraph shall not affect the duty 24 to pay for rehabilitation referred to above. 25 When an employer and employee so agree in writing, 26 nothing in this Act prevents an employee whose injury or 27 disability has been established under this Act, from relying 28 in good faith, on treatment by prayer or spiritual means 29 alone, in accordance with the tenets and practice of a 30 recognized church or religious denomination, by a duly 31 accredited practitioner thereof, and having nursing services 32 appropriate therewith, without suffering loss or diminution 33 of the compensation benefits under this Act. However, the 34 employee shall submit to all physical examinations required -14- LRB9201790WHpc 1 by this Act. The cost of such treatment and nursing care 2 shall be paid by the employee unless the employer agrees to 3 make such payment. 4 Where the accidental injury results in the amputation of 5 an arm, hand, leg or foot, or the enucleation of an eye, or 6 the loss of any of the natural teeth, the employer shall 7 furnish an artificial of any such members lost or damaged in 8 accidental injury arising out of and in the course of 9 employment, and shall also furnish the necessary braces in 10 all proper and necessary cases. In cases of the loss of a 11 member or members by amputation, the employer shall, whenever 12 necessary, maintain in good repair, refit or replace the 13 artificial limbs during the lifetime of the employee. Where 14 the accidental injury accompanied by physical injury results 15 in damage to a denture, eye glasses or contact eye lenses, or 16 where the accidental injury results in damage to an 17 artificial member, the employer shall replace or repair such 18 denture, glasses, lenses, or artificial member. 19 The furnishing by the employer of any such services or 20 appliances is not an admission of liability on the part of 21 the employer to pay compensation. 22 The furnishing of any such services or appliances or the 23 servicing thereof by the employer is not the payment of 24 compensation. 25 (b) If the period of temporary total incapacity for work 26 lasts more than 3 working days, weekly compensation as 27 hereinafter provided shall be paid beginning on the 4th day 28 of such temporary total incapacity and continuing as long as 29 the total temporary incapacity lasts. In cases where the 30 temporary total incapacity for work continues for a period of 31 14 days or more from the day of the accident compensation 32 shall commence on the day after the accident. 33 1. The compensation rate for temporary total 34 incapacity under this paragraph (b) of this Section shall -15- LRB9201790WHpc 1 be equal to 66 2/3% of the employee's average weekly wage 2 computed in accordance with Section 10, provided that it 3 shall be not less than the following amounts in the 4 following cases: 5 $100.90 in case of a single person; 6 $105.50 in case of a married person with no 7 children; 8 $108.30 in case of one child; 9 $113.40 in case of 2 children; 10 $117.40 in case of 3 children; 11 $124.30 in case of 4 or more children; 12 nor exceed the employee's average weekly wage computed in 13 accordance with the provisions of Section 10, whichever 14 is less. 15 2. The compensation rate in all cases other than 16 for temporary total disability under this paragraph (b), 17 and other than for serious and permanent disfigurement 18 under paragraph (c) and other than for permanent partial 19 disability under subparagraph (2) of paragraph (d) or 20 under paragraph (e), of this Section shall be equal to 66 21 2/3% of the employee's average weekly wage computed in 22 accordance with the provisions of Section 10, provided 23 that it shall be not less than the following amounts in 24 the following cases: 25 $80.90 in case of a single person; 26 $83.20 in case of a married person with no 27 children; 28 $86.10 in case of one child; 29 $88.90 in case of 2 children; 30 $91.80 in case of 3 children; 31 $96.90 in case of 4 or more children; 32 nor exceed the employee's average weekly wage computed in 33 accordance with the provisions of Section 10, whichever 34 is less. -16- LRB9201790WHpc 1 2.1. The compensation rate in all cases of serious 2 and permanent disfigurement under paragraph (c) and of 3 permanent partial disability under subparagraph (2) of 4 paragraph (d) or under paragraph (e) of this Section 5 shall be equal to 60% of the employee's average weekly 6 wage computed in accordance with the provisions of 7 Section 10, provided that it shall be not less than the 8 following amounts in the following cases: 9 $80.90 in case of a single person; 10 $83.20 in case of a married person with no 11 children; 12 $86.10 in case of one child; 13 $88.90 in case of 2 children; 14 $91.80 in case of 3 children; 15 $96.90 in case of 4 or more children; 16 nor exceed the employee's average weekly wage computed in 17 accordance with the provisions of Section 10, whichever 18 is less. 19 3. As used in this Section the term "child" means a 20 child of the employee including any child legally adopted 21 before the accident or whom at the time of the accident 22 the employee was under legal obligation to support or to 23 whom the employee stood in loco parentis, and who at the 24 time of the accident was under 18 years of age and not 25 emancipated. The term "children" means the plural of 26 "child". 27 4. All weekly compensation rates provided under 28 subparagraphs 1, 2 and 2.1 of this paragraph (b) of this 29 Section shall be subject to the following limitations: 30 The maximum weekly compensation rate from July 1, 31 1975, except as hereinafter provided, shall be 100% of 32 the State's average weekly wage in covered industries 33 under the Unemployment Insurance Act, that being the wage 34 that most closely approximates the State's average weekly -17- LRB9201790WHpc 1 wage. 2 The maximum weekly compensation rate, for the period 3 July 1, 1984, through June 30, 1987, except as 4 hereinafter provided, shall be $293.61. Effective July 1, 5 1987 and on July 1 of each year thereafter the maximum 6 weekly compensation rate, except as hereinafter provided, 7 shall be determined as follows: if during the preceding 8 12 month period there shall have been an increase in the 9 State's average weekly wage in covered industries under 10 the Unemployment Insurance Act, the weekly compensation 11 rate shall be proportionately increased by the same 12 percentage as the percentage of increase in the State's 13 average weekly wage in covered industries under the 14 Unemployment Insurance Act during such period. 15 The maximum weekly compensation rate, for the period 16 January 1, 1981 through December 31, 1983, except as 17 hereinafter provided, shall be 100% of the State's 18 average weekly wage in covered industries under the 19 Unemployment Insurance Act in effect on January 1, 1981. 20 Effective January 1, 1984 and on January 1, of each year 21 thereafter the maximum weekly compensation rate, except 22 as hereinafter provided, shall be determined as follows: 23 if during the preceding 12 month period there shall have 24 been an increase in the State's average weekly wage in 25 covered industries under the Unemployment Insurance Act, 26 the weekly compensation rate shall be proportionately 27 increased by the same percentage as the percentage of 28 increase in the State's average weekly wage in covered 29 industries under the Unemployment Insurance Act during 30 such period. 31 From July 1, 1977 and thereafter such maximum weekly 32 compensation rate in death cases under Section 7, and 33 permanent total disability cases under paragraph (f) or 34 subparagraph 18 of paragraph (3) of this Section and for -18- LRB9201790WHpc 1 temporary total disability under paragraph (b) of this 2 Section and for amputation of a member or enucleation of 3 an eye under paragraph (e) of this Section shall be 4 increased to 133-1/3% of the State's average weekly wage 5 in covered industries under the Unemployment Insurance 6 Act. 7 4.1. Any provision herein to the contrary 8 notwithstanding, the weekly compensation rate for 9 compensation payments under subparagraph 18 of paragraph 10 (e) of this Section and under paragraph (f) of this 11 Section and under paragraph (a) of Section 7, shall in no 12 event be less than 50% of the State's average weekly wage 13 in covered industries under the Unemployment Insurance 14 Act. 15 4.2. Any provision to the contrary notwithstanding, 16 the total compensation payable under Section 7 shall not 17 exceed the greater of $250,000 or 20 years. 18 5. For the purpose of this Section this State's 19 average weekly wage in covered industries under the 20 Unemployment Insurance Act on July 1, 1975 is hereby 21 fixed at $228.16 per week and the computation of 22 compensation rates shall be based on the aforesaid 23 average weekly wage until modified as hereinafter 24 provided. 25 6. The Department of Employment Security of the 26 State shall on or before the first day of December, 1977, 27 and on or before the first day of June, 1978, and on the 28 first day of each December and June of each year 29 thereafter, publish the State's average weekly wage in 30 covered industries under the Unemployment Insurance Act 31 and the Industrial Commission shall on the 15th day of 32 January, 1978 and on the 15th day of July, 1978 and on 33 the 15th day of each January and July of each year 34 thereafter, post and publish the State's average weekly -19- LRB9201790WHpc 1 wage in covered industries under the Unemployment 2 Insurance Act as last determined and published by the 3 Department of Employment Security. The amount when so 4 posted and published shall be conclusive and shall be 5 applicable as the basis of computation of compensation 6 rates until the next posting and publication as 7 aforesaid. 8 7. The payment of compensation by an employer or 9 his insurance carrier to an injured employee shall not 10 constitute an admission of the employer's liability to 11 pay compensation. 12 (c) For any serious and permanent disfigurement to the 13 hand, head, face, neck, arm, leg below the knee or the chest 14 above the axillary line, the employee is entitled to 15 compensation for such disfigurement, the amount determined by 16 agreement at any time or by arbitration under this Act, at a 17 hearing not less than 6 months after the date of the 18 accidental injury, which amount shall not exceed 150 weeks at 19 the applicable rate provided in subparagraph 2.1 of paragraph 20 (b) of this Section. 21 No compensation is payable under this paragraph where 22 compensation is payable under paragraphs (d), (e) or (f) of 23 this Section. 24 A duly appointed member of a fire department in a city, 25 the population of which exceeds 200,000 according to the last 26 federal or State census, is eligible for compensation under 27 this paragraph only where such serious and permanent 28 disfigurement results from burns. 29 (d) 1. If, after the accidental injury has been 30 sustained, the employee as a result thereof becomes partially 31 incapacitated from pursuing his usual and customary line of 32 employment, he shall, except in cases compensated under the 33 specific schedule set forth in paragraph (e) of this Section, 34 receive compensation for the duration of his disability, -20- LRB9201790WHpc 1 subject to the limitations as to maximum amounts fixed in 2 paragraph (b) of this Section, equal to 66-2/3% of the 3 difference between the average amount which he would be able 4 to earn in the full performance of his duties in the 5 occupation in which he was engaged at the time of the 6 accident and the average amount which he is earning or is 7 able to earn in some suitable employment or business after 8 the accident. 9 2. If, as a result of the accident, the employee 10 sustains serious and permanent injuries not covered by 11 paragraphs (c) and (e) of this Section or having sustained 12 injuries covered by the aforesaid paragraphs (c) and (e), he 13 shall have sustained in addition thereto other injuries which 14 injuries do not incapacitate him from pursuing the duties of 15 his employment but which would disable him from pursuing 16 other suitable occupations, or which have otherwise resulted 17 in physical impairment; or if such injuries partially 18 incapacitate him from pursuing the duties of his usual and 19 customary line of employment but do not result in an 20 impairment of earning capacity, or having resulted in an 21 impairment of earning capacity, the employee elects to waive 22 his right to recover under the foregoing subparagraph 1 of 23 paragraph (d) of this Section then in any of the foregoing 24 events, he shall receive in addition to compensation for 25 temporary total disability under paragraph (b) of this 26 Section, compensation at the rate provided in subparagraph 27 2.1 of paragraph (b) of this Section for that percentage of 28 500 weeks that the partial disability resulting from the 29 injuries covered by this paragraph bears to total disability. 30 If the employee shall have sustained a fracture of one or 31 more vertebra or fracture of the skull, the amount of 32 compensation allowed under this Section shall be not less 33 than 6 weeks for a fractured skull and 6 weeks for each 34 fractured vertebra, and in the event the employee shall have -21- LRB9201790WHpc 1 sustained a fracture of any of the following facial bones: 2 nasal, lachrymal, vomer, zygoma, maxilla, palatine or 3 mandible, the amount of compensation allowed under this 4 Section shall be not less than 2 weeks for each such 5 fractured bone, and for a fracture of each transverse process 6 not less than 3 weeks. In the event such injuries shall 7 result in the loss of a kidney, spleen or lung, the amount of 8 compensation allowed under this Section shall be not less 9 than 10 weeks for each such organ. Compensation awarded 10 under this subparagraph 2 shall not take into consideration 11 injuries covered under paragraphs (c) and (e) of this Section 12 and the compensation provided in this paragraph shall not 13 affect the employee's right to compensation payable under 14 paragraphs (b), (c) and (e) of this Section for the 15 disabilities therein covered. 16 (e) For accidental injuries in the following schedule, 17 the employee shall receive compensation for the period of 18 temporary total incapacity for work resulting from such 19 accidental injury, under subparagraph 1 of paragraph (b) of 20 this Section, and shall receive in addition thereto 21 compensation for a further period for the specific loss 22 herein mentioned, but shall not receive any compensation 23 under any other provisions of this Act. The following 24 listed amounts apply to either the loss of or the permanent 25 and complete loss of use of the member specified, such 26 compensation for the length of time as follows: 27 1. Thumb-70 weeks. 28 2. First, or index finger-40 weeks. 29 3. Second, or middle finger-35 weeks. 30 4. Third, or ring finger-25 weeks. 31 5. Fourth, or little finger-20 weeks. 32 6. Great toe-35 weeks. 33 7. Each toe other than great toe-12 weeks. 34 8. The loss of the first or distal phalanx of the -22- LRB9201790WHpc 1 thumb or of any finger or toe shall be considered to be 2 equal to the loss of one-half of such thumb, finger or 3 toe and the compensation payable shall be one-half of the 4 amount above specified. The loss of more than one 5 phalanx shall be considered as the loss of the entire 6 thumb, finger or toe. In no case shall the amount 7 received for more than one finger exceed the amount 8 provided in this schedule for the loss of a hand. 9 9. Hand-190 weeks. The loss of 2 or more digits, 10 or one or more phalanges of 2 or more digits, of a hand 11 may be compensated on the basis of partial loss of use of 12 a hand, provided, further, that the loss of 4 digits, or 13 the loss of use of 4 digits, in the same hand shall 14 constitute the complete loss of a hand. 15 10. Arm-235 weeks. Where an accidental injury 16 results in the amputation of an arm below the elbow, such 17 injury shall be compensated as a loss of an arm. Where 18 an accidental injury results in the amputation of an arm 19 above the elbow, compensation for an additional 15 weeks 20 shall be paid, except where the accidental injury results 21 in the amputation of an arm at the shoulder joint, or so 22 close to shoulder joint that an artificial arm cannot be 23 used, or results in the disarticulation of an arm at the 24 shoulder joint, in which case compensation for an 25 additional 65 weeks shall be paid. 26 11. Foot-155 weeks. 27 12. Leg-200 weeks. Where an accidental injury 28 results in the amputation of a leg below the knee, such 29 injury shall be compensated as loss of a leg. Where an 30 accidental injury results in the amputation of a leg 31 above the knee, compensation for an additional 25 weeks 32 shall be paid, except where the accidental injury results 33 in the amputation of a leg at the hip joint, or so close 34 to the hip joint that an artificial leg cannot be used, -23- LRB9201790WHpc 1 or results in the disarticulation of a leg at the hip 2 joint, in which case compensation for an additional 75 3 weeks shall be paid. 4 13. Eye-150 weeks. Where an accidental injury 5 results in the enucleation of an eye, compensation for an 6 additional 10 weeks shall be paid. 7 14. Loss of hearing of one ear-50 weeks; total and 8 permanent loss of hearing of both ears-200 weeks. 9 15. Testicle-50 weeks; both testicles-150 weeks. 10 16. For the permanent partial loss of use of a 11 member or sight of an eye, or hearing of an ear, 12 compensation during that proportion of the number of 13 weeks in the foregoing schedule provided for the loss of 14 such member or sight of an eye, or hearing of an ear, 15 which the partial loss of use thereof bears to the total 16 loss of use of such member, or sight of eye, or hearing 17 of an ear. 18 (a) Loss of hearing for compensation purposes 19 shall be confined to the frequencies of 1,000, 2,000 20 and 3,000 cycles per second. Loss of hearing ability 21 for frequency tones above 3,000 cycles per second 22 are not to be considered as constituting disability 23 for hearing. 24 (b) The percent of hearing loss, for purposes 25 of the determination of compensation claims for 26 occupational deafness, shall be calculated as the 27 average in decibels for the thresholds of hearing 28 for the frequencies of 1,000, 2,000 and 3,000 cycles 29 per second. Pure tone air conduction audiometric 30 instruments, approved by nationally recognized 31 authorities in this field, shall be used for 32 measuring hearing loss. If the losses of hearing 33 average 30 decibels or less in the 3 frequencies, 34 such losses of hearing shall not then constitute any -24- LRB9201790WHpc 1 compensable hearing disability. If the losses of 2 hearing average 85 decibels or more in the 3 3 frequencies, then the same shall constitute and be 4 total or 100% compensable hearing loss. 5 (c) In measuring hearing impairment, the 6 lowest measured losses in each of the 3 frequencies 7 shall be added together and divided by 3 to 8 determine the average decibel loss. For every 9 decibel of loss exceeding 30 decibels an allowance 10 of 1.82% shall be made up to the maximum of 100% 11 which is reached at 85 decibels. 12 (d) If a hearing loss is established to have 13 existed on July 1, 1975 by audiometric testing the 14 employer shall not be liable for the previous loss 15 so established nor shall he be liable for any loss 16 for which compensation has been paid or awarded. 17 (e) No consideration shall be given to the 18 question of whether or not the ability of an 19 employee to understand speech is improved by the use 20 of a hearing aid. 21 (f) No claim for loss of hearing due to 22 industrial noise shall be brought against an 23 employer or allowed unless the employee has been 24 exposed for a period of time sufficient to cause 25 permanent impairment to noise levels in excess of 26 the following: 27 Sound Level DBA 28 Slow Response Hours Per Day 29 90 8 30 92 6 31 95 4 32 97 3 33 100 2 34 102 1-1/2 -25- LRB9201790WHpc 1 105 1 2 110 1/2 3 115 1/4 4 This subparagraph (f) shall not be applied in cases 5 of hearing loss resulting from trauma or explosion. 6 17. In computing the compensation to be paid to any 7 employee who, before the accident for which he claims 8 compensation, had before that time sustained an injury 9 resulting in the loss by amputation or partial loss by 10 amputation of any member, including hand, arm, thumb or 11 fingers, leg, foot or any toes, such loss or partial loss 12 of any such member shall be deducted from any award made 13 for the subsequent injury. For the permanent loss of use 14 or the permanent partial loss of use of any such member 15 or the partial loss of sight of an eye, for which 16 compensation has been paid, then such loss shall be taken 17 into consideration and deducted from any award for the 18 subsequent injury. 19 18. The specific case of loss of both hands, both 20 arms, or both feet, or both legs, or both eyes, or of any 21 two thereof, or the permanent and complete loss of the 22 use thereof, constitutes total and permanent disability, 23 to be compensated according to the compensation fixed by 24 paragraph (f) of this Section. These specific cases of 25 total and permanent disability do not exclude other 26 cases. 27 Any employee who has previously suffered the loss or 28 permanent and complete loss of the use of any of such 29 members, and in a subsequent independent accident loses 30 another or suffers the permanent and complete loss of the 31 use of any one of such members the employer for whom the 32 injured employee is working at the time of the last 33 independent accident is liable to pay compensation only 34 for the loss or permanent and complete loss of the use of -26- LRB9201790WHpc 1 the member occasioned by the last independent accident. 2 19. In a case of specific loss and the subsequent 3 death of such injured employee from other causes than 4 such injury leaving a widow, widower, or dependents 5 surviving before payment or payment in full for such 6 injury, then the amount due for such injury is payable to 7 the widow or widower and, if there be no widow or 8 widower, then to such dependents, in the proportion which 9 such dependency bears to total dependency. 10 Beginning July 1, 1980, and every 6 months thereafter, 11 the Commission shall examine the Second Injury Fund and when, 12 after deducting all advances or loans made to such Fund, the 13 amount therein is $500,000 then the amount required to be 14 paid by employers pursuant to paragraph (f) of Section 7 15 shall be reduced by one-half. When the Second Injury Fund 16 reaches the sum of $600,000 then the payments shall cease 17 entirely. However, when the Second Injury Fund has been 18 reduced to $400,000, payment of one-half of the amounts 19 required by paragraph (f) of Section 7 shall be resumed, in 20 the manner herein provided, and when the Second Injury Fund 21 has been reduced to $300,000, payment of the full amounts 22 required by paragraph (f) of Section 7 shall be resumed, in 23 the manner herein provided. The Commission shall make the 24 changes in payment effective by general order, and the 25 changes in payment become immediately effective for all cases 26 coming before the Commission thereafter either by settlement 27 agreement or final order, irrespective of the date of the 28 accidental injury. 29 On August 1, 1996 and on February 1 and August 1 of each 30 subsequent year, the Commission shall examine the special 31 fund designated as the "Rate Adjustment Fund" and when, after 32 deducting all advances or loans made to said fund, the amount 33 therein is $4,000,000, the amount required to be paid by 34 employers pursuant to paragraph (f) of Section 7 shall be -27- LRB9201790WHpc 1 reduced by one-half. When the Rate Adjustment Fund reaches 2 the sum of $5,000,000 the payment therein shall cease 3 entirely. However, when said Rate Adjustment Fund has been 4 reduced to $3,000,000 the amounts required by paragraph (f) 5 of Section 7 shall be resumed in the manner herein provided. 6 (f) In case of complete disability, which renders the 7 employee wholly and permanently incapable of work, or in the 8 specific case of total and permanent disability as provided 9 in subparagraph 18 of paragraph (e) of this Section, 10 compensation shall be payable at the rate provided in 11 subparagraph 2 of paragraph (b) of this Section for life. 12 An employee entitled to benefits under paragraph (f) of 13 this Section shall also be entitled to receive from the Rate 14 Adjustment Fund provided in paragraph (f) of Section 7 of the 15 supplementary benefits provided in paragraph (g) of this 16 Section 8. 17 If any employee who receives an award under this 18 paragraph afterwards returns to work or is able to do so, and 19 earns or is able to earn as much as before the accident, 20 payments under such award shall cease. If such employee 21 returns to work, or is able to do so, and earns or is able to 22 earn part but not as much as before the accident, such award 23 shall be modified so as to conform to an award under 24 paragraph (d) of this Section. If such award is terminated 25 or reduced under the provisions of this paragraph, such 26 employees have the right at any time within 30 months after 27 the date of such termination or reduction to file petition 28 with the Commission for the purpose of determining whether 29 any disability exists as a result of the original accidental 30 injury and the extent thereof. 31 Disability as enumerated in subdivision 18, paragraph (e) 32 of this Section is considered complete disability. 33 If an employee who had previously incurred loss or the 34 permanent and complete loss of use of one member, through the -28- LRB9201790WHpc 1 loss or the permanent and complete loss of the use of one 2 hand, one arm, one foot, one leg, or one eye, incurs 3 permanent and complete disability through the loss or the 4 permanent and complete loss of the use of another member, he 5 shall receive, in addition to the compensation payable by the 6 employer and after such payments have ceased, an amount from 7 the Second Injury Fund provided for in paragraph (f) of 8 Section 7, which, together with the compensation payable from 9 the employer in whose employ he was when the last accidental 10 injury was incurred, will equal the amount payable for 11 permanent and complete disability as provided in this 12 paragraph of this Section. 13 The custodian of the Second Injury Fund provided for in 14 paragraph (f) of Section 7 shall be joined with the employer 15 as a party respondent in the application for adjustment of 16 claim. The application for adjustment of claim shall state 17 briefly and in general terms the approximate time and place 18 and manner of the loss of the first member. 19 In its award the Commission or the Arbitrator shall 20 specifically find the amount the injured employee shall be 21 weekly paid, the number of weeks compensation which shall be 22 paid by the employer, the date upon which payments begin out 23 of the Second Injury Fund provided for in paragraph (f) of 24 Section 7 of this Act, the length of time the weekly payments 25 continue, the date upon which the pension payments commence 26 and the monthly amount of the payments. The Commission shall 27 30 days after the date upon which payments out of the Second 28 Injury Fund have begun as provided in the award, and every 29 month thereafter, prepare and submit to the State Comptroller 30 a voucher for payment for all compensation accrued to that 31 date at the rate fixed by the Commission. The State 32 Comptroller shall draw a warrant to the injured employee 33 along with a receipt to be executed by the injured employee 34 and returned to the Commission. The endorsed warrant and -29- LRB9201790WHpc 1 receipt is a full and complete acquittance to the Commission 2 for the payment out of the Second Injury Fund. No other 3 appropriation or warrant is necessary for payment out of the 4 Second Injury Fund. The Second Injury Fund is appropriated 5 for the purpose of making payments according to the terms of 6 the awards. 7 As of July 1, 1980 to July 1, 1982, all claims against 8 and obligations of the Second Injury Fund shall become claims 9 against and obligations of the Rate Adjustment Fund to the 10 extent there is insufficient money in the Second Injury Fund 11 to pay such claims and obligations. In that case, all 12 references to "Second Injury Fund" in this Section shall also 13 include the Rate Adjustment Fund. 14 (g) Every award for permanent total disability entered 15 by the Commission on and after July 1, 1965 under which 16 compensation payments shall become due and payable after the 17 effective date of this amendatory Act, and every award for 18 death benefits or permanent total disability entered by the 19 Commission on and after the effective date of this amendatory 20 Act shall be subject to annual adjustments as to the amount 21 of the compensation rate therein provided. Such adjustments 22 shall first be made on July 15, 1977, and all awards made and 23 entered prior to July 1, 1975 and on July 15 of each year 24 thereafter. In all other cases such adjustment shall be made 25 on July 15 of the second year next following the date of the 26 entry of the award and shall further be made on July 15 27 annually thereafter. If during the intervening period from 28 the date of the entry of the award, or the last periodic 29 adjustment, there shall have been an increase in the State's 30 average weekly wage in covered industries under the 31 Unemployment Insurance Act, the weekly compensation rate 32 shall be proportionately increased by the same percentage as 33 the percentage of increase in the State's average weekly wage 34 in covered industries under the Unemployment Insurance Act. -30- LRB9201790WHpc 1 The increase in the compensation rate under this paragraph 2 shall in no event bring the total compensation rate to an 3 amount greater than the prevailing maximum rate. Such 4 increase shall be paid in the same manner as herein provided 5 for payments under the Second Injury Fund to the injured 6 employee, or his dependents, as the case may be, out of the 7 Rate Adjustment Fund provided in paragraph (f) of Section 7 8 of this Act. Payments shall be made at the same intervals as 9 provided in the award or, at the option of the Commission, 10 may be made in quarterly payment on the 15th day of January, 11 April, July and October of each year. In the event of a 12 decrease in such average weekly wage there shall be no change 13 in the then existing compensation rate. The within paragraph 14 shall not apply to cases where there is disputed liability 15 and in which a compromise lump sum settlement between the 16 employer and the injured employee, or his dependents, as the 17 case may be, has been duly approved by the Industrial 18 Commission. 19 Provided, that in cases of awards entered by the 20 Commission for injuries occurring before July 1, 1975, the 21 increases in the compensation rate adjusted under the 22 foregoing provision of this paragraph (g) shall be limited to 23 increases in the State's average weekly wage in covered 24 industries under the Unemployment Insurance Act occurring 25 after July 1, 1975. 26 (h) In case death occurs from any cause before the total 27 compensation to which the employee would have been entitled 28 has been paid, then in case the employee leaves any widow, 29 widower, child, parent (or any grandchild, grandparent or 30 other lineal heir or any collateral heir dependent at the 31 time of the accident upon the earnings of the employee to the 32 extent of 50% or more of total dependency) such compensation 33 shall be paid to the beneficiaries of the deceased employee 34 and distributed as provided in paragraph (g) of Section 7. -31- LRB9201790WHpc 1 (h-1) In case an injured employee is under legal 2 disability at the time when any right or privilege accrues to 3 him or her under this Act, a guardian may be appointed 4 pursuant to law, and may, on behalf of such person under 5 legal disability, claim and exercise any such right or 6 privilege with the same effect as if the employee himself or 7 herself had claimed or exercised the right or privilege. No 8 limitations of time provided by this Act run so long as the 9 employee who is under legal disability is without a 10 conservator or guardian. 11 (i) In case the injured employee is under 16 years of 12 age at the time of the accident and is illegally employed, 13 the amount of compensation payable under paragraphs (b), (c), 14 (d), (e) and (f) of this Section is increased 50%. 15 However, where an employer has on file an employment 16 certificate issued pursuant to the Child Labor Law or work 17 permit issued pursuant to the Federal Fair Labor Standards 18 Act, as amended, or a birth certificate properly and duly 19 issued, such certificate, permit or birth certificate is 20 conclusive evidence as to the age of the injured minor 21 employee for the purposes of this Section. 22 Nothing herein contained repeals or amends the provisions 23 of the Child Labor Law relating to the employment of minors 24 under the age of 16 years. 25 (j) 1. In the event the injured employee receives 26 benefits, including medical, surgical or hospital benefits 27 under any group plan covering non-occupational disabilities 28 contributed to wholly or partially by the employer, which 29 benefits should not have been payable if any rights of 30 recovery existed under this Act, then such amounts so paid to 31 the employee from any such group plan as shall be consistent 32 with, and limited to, the provisions of paragraph 2 hereof, 33 shall be credited to or against any compensation payment for 34 temporary total incapacity for work or any medical, surgical -32- LRB9201790WHpc 1 or hospital benefits made or to be made under this Act. In 2 such event, the period of time for giving notice of 3 accidental injury and filing application for adjustment of 4 claim does not commence to run until the termination of such 5 payments. This paragraph does not apply to payments made 6 under any group plan which would have been payable 7 irrespective of an accidental injury under this Act. Any 8 employer receiving such credit shall keep such employee safe 9 and harmless from any and all claims or liabilities that may 10 be made against him by reason of having received such 11 payments only to the extent of such credit. 12 Any excess benefits paid to or on behalf of a State 13 employee by the State Employees' Retirement System under 14 Article 14 of the Illinois Pension Code on a death claim or 15 disputed disability claim shall be credited against any 16 payments made or to be made by the State of Illinois to or on 17 behalf of such employee under this Act, except for payments 18 for medical expenses which have already been incurred at the 19 time of the award. The State of Illinois shall directly 20 reimburse the State Employees' Retirement System to the 21 extent of such credit. 22 2. Nothing contained in this Act shall be construed to 23 give the employer or the insurance carrier the right to 24 credit for any benefits or payments received by the employee 25 other than compensation payments provided by this Act, and 26 where the employee receives payments other than compensation 27 payments, whether as full or partial salary, group insurance 28 benefits, bonuses, annuities or any other payments, the 29 employer or insurance carrier shall receive credit for each 30 such payment only to the extent of the compensation that 31 would have been payable during the period covered by such 32 payment. 33 3. The extension of time for the filing of an 34 Application for Adjustment of Claim as provided in paragraph -33- LRB9201790WHpc 1 1 above shall not apply to those cases where the time for 2 such filing had expired prior to the date on which payments 3 or benefits enumerated herein have been initiated or resumed. 4 Provided however that this paragraph 3 shall apply only to 5 cases wherein the payments or benefits hereinabove enumerated 6 shall be received after July 1, 1969. 7 (Source: P.A. 89-470, eff. 6-13-96.) 8 (820 ILCS 305/8a new) 9 Sec. 8a. Reports. The Industrial Commission shall report 10 in writing to the Governor and the Illinois General Assembly 11 on the 31st day of December, annually, beginning one year 12 after the effective date of this amendatory Act of the 92nd 13 General Assembly, the details and results of implementation 14 of this amendatory Act of the 92nd General Assembly 15 sufficient to determine its effectiveness in maintaining the 16 availability of quality health care services for injured 17 employees and at a reasonable cost to employers. 18 (820 ILCS 305/16) (from Ch. 48, par. 138.16) 19 Sec. 16. The Commission shall make and publish 20 procedural rules and orders for carrying out the duties 21 imposed upon it by law and for determining the extent of 22 disability sustained, which rules and orders shall be deemed 23 prima facie reasonable and valid. 24 The process and procedure before the Commission shall be 25 as simple and summary as reasonably may be. 26 The Commission upon application of either party may issue 27 dedimus potestatem directed to a commissioner, notary public, 28 justice of the peace or any other officer authorized by law 29 to administer oaths, to take the depositions of such witness 30 or witnesses as may be necessary in the judgment of such 31 applicant. Such dedimus potestatem may issue to any of the 32 officers aforesaid in any state or territory of the United -34- LRB9201790WHpc 1 States. When the deposition of any witness resident of a 2 foreign country is desired to be taken, the dedimus shall be 3 directed to and the deposition taken before a consul, vice 4 consul or other authorized representative of the government 5 of the United States of America, whose station is in the 6 country where the witness whose deposition is to be taken 7 resides. In countries where the government of the United 8 States has no consul or other diplomatic representative, then 9 depositions in such case shall be taken through the 10 appropriate judicial authority of that country; or where 11 treaties provide for other methods of taking depositions, 12 then the same may be taken as in such treaties provided. The 13 Commission shall have the power to adopt necessary rules to 14 govern the issue of such dedimus potestatem. 15 The Commission, or any member thereof, or any Arbitrator 16 designated by the Commission shall have the power to 17 administer oaths, subpoena and examine witnesses; to issue 18 subpoenas duces tecum, requiring the production of such 19 books, papers, records and documents as may be evidence of 20 any matter under inquiry and to examine and inspect the same 21 and such places or premises as may relate to the question in 22 dispute. The Commission, or any member thereof, or any 23 Arbitrator designated by the Commission, shall on written 24 request of either party to the dispute, issue subpoenas for 25 the attendance of such witnesses and production of such 26 books, papers, records and documents as shall be designated 27 in the applications, and the parties applying for such 28 subpoena shall advance the officer and witness fees provided 29 for in civil actions pending in circuit courts of this State, 30 except as otherwise provided by Section 20 of this Act. 31 Service of such subpoena shall be made by any sheriff or 32 other person. In case any person refuses to comply with an 33 order of the Commission or subpoenas issued by it or by any 34 member thereof, or any Arbitrator designated by the -35- LRB9201790WHpc 1 Commission or to permit an inspection of places or premises, 2 or to produce any books, papers, records or documents, or any 3 witness refuses to testify to any matters regarding which he 4 or she may be lawfully interrogated, the Circuit Court of the 5 county in which the hearing or matter is pending, on 6 application of any member of the Commission or any Arbitrator 7 designated by the Commission, shall compel obedience by 8 attachment proceedings, as for contempt, as in a case of 9 disobedience of the requirements of a subpoena from such 10 court on a refusal to testify therein. 11 The records kept by a hospital, certified to as true and 12 correct by the superintendent or other officer in charge, 13 showing the medical and surgical treatment given an injured 14 employee in such hospital, shall be admissible without any 15 further proof as evidence of the medical and surgical matters 16 stated therein, but shall not be conclusive proof of such 17 matters. 18 The Commission at its expense shall provide an official 19 court reporter to take the testimony and record of 20 proceedings at the hearings before an Arbitrator or the 21 Commission, who shall furnish a transcript of such testimony 22 or proceedings to either party requesting it, upon payment 23 therefor at the rate of $1.00 per page for the original and 24 35 cents per page for each copy of such transcript. Payment 25 for photostatic copies of exhibits shall be extra. If the 26 Commission has determined, as provided in Section 20 of this 27 Act, that the employee is a poor person, a transcript of such 28 testimony and proceedings, including photostatic copies of 29 exhibits, shall be furnished to such employee at the 30 Commission's expense. 31 In accordance with the provisions of subsection (a) of 32 Section 8 of this Act and subdivision (a)(3) of Section 8 of 33 this Act, the Commission shall have the power to determine 34 the reasonableness and fix the amount of any fee of -36- LRB9201790WHpc 1 compensation charged by any person, including attorneys, 2 physicians, surgeons and hospitals, for any service performed 3 in connection with this Act, or for which payment is to be 4 made under this Act or rendered in securing any right under 5 this Act. 6 Whenever the Commission shall find that the employer, his 7 or her agent, service company or insurance carrier has been 8 guilty of delay or unfairness towards an employee in the 9 adjustment, settlement or payment of benefits due such 10 employee within the purview of the provisions of paragraph 11 (c) of Section 4 of this Act; or has been guilty of 12 unreasonable or vexatious delay, intentional under-payment of 13 compensation benefits, or has engaged in frivolous defenses 14 which do not present a real controversy, within the purview 15 of the provisions of paragraph (k) of Section 19 of this Act, 16 the Commission may assess all or any part of the attorney's 17 fees and costs against such employer and his or her insurance 18 carrier. 19 (Source: P.A. 86-998.) 20 (820 ILCS 305/16a) (from Ch. 48, par. 138.16a) 21 Sec. 16a. (A) In the establishment or approval of 22 attorney's fees in relation to claims brought under this Act, 23 the Commission shall be guided by the provisions of this 24 Section and by the legislative intent, hereby declared, to 25 encourage settlement and prompt administrative handling of 26 such claims and thereby reduce expenses to claimants for 27 compensation under this Act. 28 (B) With respect to any and all proceedings in 29 connection with any initial or original claim under this Act, 30 no claim of any attorney for services rendered in connection 31 with the securing of compensation for an employee or his 32 dependents and also resolving any disputed health care 33 provider charges and medical expenses, whether secured by -37- LRB9201790WHpc 1 agreement, order, award or a judgment in any court shall 2 exceed 20% of the amount of compensation recovered and paid, 3 unless further fees shall be allowed to the attorney upon a 4 hearing by the Commission fixing fees, and subject to the 5 other provisions of this Section. However, except as 6 hereinafter provided in this Section, in death cases, total 7 disability cases and partial disability cases, the amount of 8 an attorney's fees shall not exceed 20% of the sum which 9 would be due under this Act for 364 weeks of permanent total 10 disability based upon the employee's average gross weekly 11 wage prior to the date of the accident and subject to the 12 maximum weekly benefits provided in this Act unless further 13 fees shall be allowed to the attorney upon a hearing by the 14 Commission fixing fees. 15 (B-5) With respect to any and all proceedings in 16 connection with any disputed health care provider charges and 17 medical expenses associated with any initial or original 18 claim under this Act, no claim of any attorney for services 19 rendered in connection with the securing of compensation for 20 any health care provider, whether secured by agreement, 21 order, award, or a judgment in any court, shall exceed 20% of 22 the amount of compensation recovered and paid to any health 23 care provider. These fees shall be fixed pursuant to a 24 written contract in accordance with subsection (C) of this 25 Section. 26 In any proceeding including disputed health care 27 payments, in whole or in part, all health care providers 28 shall be given 30 calendar days notice by the employer prior 29 to a hearing to effect any award or settlement to submit all 30 outstanding bills. Any award or settlement payments for a 31 contested claim shall be made to the attorney involved in the 32 name of the attorney and health care providers. The attorney 33 shall disburse the funds to the health care providers 34 involved in accordance with the award or settlement. The -38- LRB9201790WHpc 1 amount of health care provider payments shall be the usual 2 and customary charges under subsection 8(a), except when the 3 amount of the award or settlement of a contested claim is 4 insufficient to compensate all health care providers usual 5 and customary charges. In these situations, all physician 6 payments shall not exceed 30% of the award or settlement, all 7 hospital payments (in-patient and out-patient) shall not 8 exceed 30% of the award or settlement, and all other health 9 care providers payments shall not exceed 20% of the award or 10 settlement. All health care providers shall share 11 proportionate amounts within their respective statutory 12 limitations as full and final payment for all sums due and 13 owing. In addition, usual and customary charges shall be 14 satisfied to extent possible for all health care providers 15 from amount unused within the statutory limitations on a 16 proportionate basis. 17 (C) All attorneys' fees in connection with the initial 18 or original claim for compensation shall be fixed pursuant to 19 a written contract on forms prescribed by the Commission 20 between the attorney and the employee or his dependents, and 21 every attorney, whether the disposition of the original claim 22 is by agreement, settlement, award, judgment or otherwise, 23 shall file his contract with the Chairman of the Commission 24 who shall approve the contract only if it is in accordance 25 with all provisions of this Section. 26 (D) No attorneys' fees shall be charged with respect to 27 compensation for undisputed medical expenses. 28 (E) No attorneys' fees shall be charged in connection 29 with any temporary total disability compensation unless the 30 payment of such compensation in a timely manner or in the 31 proper amount is refused, or unless such compensation is 32 terminated by the employer and the payment of such 33 compensation is obtained or reinstated by the efforts of the 34 attorney, whether by agreement, settlement, award or -39- LRB9201790WHpc 1 judgment. 2 (F) In the following cases in which there is no dispute 3 between the parties as to the liability of the respondent to 4 pay compensation in a timely manner or in the proper amount 5 and there is no dispute that the accident has resulted in: 6 (1) the death of the employee; or 7 (2) a statutory permanent disability; or 8 (3) the amputation of a finger, toe, or member; or 9 (4) the removal of a testicle; or 10 (5) the enucleation of or 100% loss of vision of an eye; 11 the legal fees, if any, for services rendered are to be fixed 12 by the Industrial Commission at a nominal amount, not 13 exceeding $100. 14 (G) In the following cases in which there is no dispute 15 between the parties as to the liability of the respondent to 16 pay compensation and there is no dispute that the accident 17 has resulted in: 18 (1) a fracture of one or more vertebrae; or 19 (2) a skull fracture; or 20 (3) a fracture of one or more spinous or transverse 21 processes; or 22 (4) a fracture of one or more facial bones; or 23 (5) the removal of a kidney, spleen or lung; 24 the legal fees, if any, for services rendered are to be fixed 25 by the Industrial Commission at a nominal amount, not 26 exceeding $100, provided that the employee is awarded the 27 minimum amount for the above injuries as specified in Section 28 8(d)2. 29 (H) With regard to any claim where the amount to be paid 30 for compensation does not exceed the written offer made to 31 the claimant or claimants by the employer or his agent prior 32 to representation by an attorney, no fees shall be paid to 33 any such attorney. 34 (I) All attorneys' fees for representation of an -40- LRB9201790WHpc 1 employee or his dependents shall be only recoverable from 2 compensation actually paid to such employee or dependents. 3 (J) Any and all disputes regarding attorneys' fees, 4 whether such disputes relate to which one or more attorneys 5 represents the claimant or claimants or is entitled to the 6 attorneys' fees, or a division of attorneys' fees where the 7 claimant or claimants are or have been represented by more 8 than one attorney, or any other disputes concerning 9 attorneys' fees or contracts for attorneys' fees, shall be 10 heard and determined by the Commission after reasonable 11 notice to all interested parties and attorneys. 12 (K) After reasonable notice and hearing before the 13 Commission, any attorney found to be in violation of any 14 provision of this Section shall be required to make 15 restitution of any excess fees charged plus interest at a 16 reasonable rate as determined by the Commission. 17 (Source: P.A. 84-1438.) 18 Section 15. The Workers' Occupational Diseases Act is 19 amended by changing Sections 16 and 16a and adding Section 20 16b as follows: 21 (820 ILCS 310/16) (from Ch. 48, par. 172.51) 22 Sec. 16. The Commission shall make and publish procedural 23 rules and orders for carrying out the duties imposed upon it 24 by law, which rules and orders shall be deemed prima facie 25 reasonable and valid. 26 The process and procedure before the Commission shall be 27 as simple and summary as reasonably may be. 28 The Commission upon application of either party may issue 29 a dedimus potestatem directed to a commissioner, notary 30 public, magistrate, justice of the peace or any other officer 31 authorized by law to administer oaths, to take the 32 depositions of such witness or witnesses as may be necessary -41- LRB9201790WHpc 1 in the judgment of such applicant. Such dedimus potestatem 2 may issue to any of the officers aforesaid in any state or 3 territory of the United States. When the deposition of any 4 witness resident of a foreign country is desired to be taken, 5 the dedimus shall be directed to and the deposition taken 6 before a consul, vice consul or other authorized 7 representative of the government of the United States of 8 America, whose station is in the country where the witness 9 whose deposition is to be taken resides. In countries where 10 the government of the United States has no consul or other 11 diplomatic representative, then depositions in such case 12 shall be taken through the appropriate judicial authority of 13 that country; or where treaties provide for other methods of 14 taking depositions, then the same may be taken as in such 15 treaties provided. The Commission shall have the power to 16 adopt necessary rules to govern the issue of such dedimus 17 potestatem. 18 The Commission, or any member thereof, or any Arbitrator 19 designated by said Commission shall have the power to 20 administer oaths, subpoena and examine witnesses; to issue 21 subpoenas duces tecum, requiring the production of such 22 books, papers, records and documents as may be evidence of 23 any matter under inquiry and to examine and inspect the same 24 and such places or premises as may relate to the question in 25 dispute. Said Commission or any member thereof, or any 26 Arbitrator designated by said Commission, shall on written 27 request of either party to the dispute, issue subpoenas for 28 the attendance of such witnesses and production of such 29 books, papers, records and documents as shall be designated 30 in said applications, providing however, that the parties 31 applying for such subpoena shall advance the officer and 32 witness fees provided for in suits pending in the Circuit 33 Court. Service of such subpoena shall be made by any sheriff 34 or other person. In case any person refuses to comply with -42- LRB9201790WHpc 1 an order of the Commission or subpoenas issued by it or by 2 any member thereof, or any Arbitrator designated by said 3 Commission or to permit an inspection of places or premises, 4 or to produce any books, papers, records or documents, or any 5 witness refuses to testify to any matters regarding which he 6 may be lawfully interrogated, the Circuit Court for the 7 county in which said hearing or matter is pending, on 8 application of any member of the Commission or any Arbitrator 9 designated by the Commission, shall compel obedience by 10 attachment proceedings, as for contempt, as in a case of 11 disobedience of the requirements of a subpoena from such 12 court on a refusal to testify therein. 13 The records kept by a hospital, certified to as true and 14 correct by the superintendent or other officer in charge, 15 showing the medical and surgical treatment given an injured 16 employee in such hospital, shall be admissible without any 17 further proof as evidence of the medical and surgical matters 18 stated therein, but shall not be conclusive proof of such 19 matters. 20 The Commission at its expense shall provide an official 21 court reporter to take the testimony and record of 22 proceedings at the hearings before an Arbitrator or the 23 Commission, who shall furnish a transcript of such testimony 24 or proceedings to either party requesting it, upon payment to 25 him therefor at the rate of $1.00 per page for the original 26 and 35 cents per page for each copy of such transcript. 27 Payment for photostatic copies of exhibits shall be extra. 28 If the Commission has determined, as provided in Section 19.5 29 of this Act, that the employee is a poor person, a transcript 30 of such testimony and proceedings, including photostatic 31 copies of exhibits, shall be furnished to such employee at 32 the Commission's expense. 33 In accordance with subsection (a) of Section 8 of the 34 Workers' Compensation Act and subdivision (a)(3) of Section 8 -43- LRB9201790WHpc 1 of the Workers' Compensation Act, the Commission shall have 2 the power to determine the reasonableness and fix the amount 3 of any fee of compensation charged by any person, including 4 attorneys, physicians, surgeons and hospitals, for any 5 service performed in connection with this Act, or for which 6 payment is to be made under this Act or rendered in securing 7 any right under this Act. 8 Whenever the Commission shall find that the employer, his 9 agent, service company or insurance carrier has been guilty 10 of delay or unfairness towards an employee in the adjustment, 11 settlement or payment of benefits due such employee or has 12 been guilty of unreasonable or vexatious delay, intentional 13 under-payment of compensation benefits, or has engaged in 14 frivolous defenses which do not present a real controversy, 15 the Commission may assess all or any part of the attorney's 16 fees and costs against such employer and his insurance 17 carrier. 18 (Source: P.A. 86-998; 87-895.) 19 (820 ILCS 310/16a) (from Ch. 48, par. 172.51a) 20 Sec. 16a. (A) In the establishment or approval of 21 attorney's fees in relation to claims brought under this Act, 22 the Commission shall be guided by the provisions of this 23 Section and by the legislative intent, hereby declared, to 24 encourage settlement and prompt administrative handling of 25 such claims and thereby reduce expenses to claimants for 26 compensation under this Act. 27 (B) With respect to any and all proceedings in 28 connection with any initial or original claim under this Act, 29 no claim of any attorney for services rendered in connection 30 with the securing of compensation for an employee or his 31 dependents and also resolving any disputed health care 32 provider charges and medical expenses, whether secured by 33 agreement, order, award or a judgment in any court shall -44- LRB9201790WHpc 1 exceed 20% of the amount of compensation recovered and paid, 2 unless further fees shall be allowed to the attorney upon a 3 hearing by the Commission fixing fees and subject to the 4 other provisions of this Section. However, except as 5 hereinafter provided in this Section, in death cases, total 6 disability cases and partial disability cases, the amount of 7 an attorney's fees shall not exceed 20% of the sum which 8 would be due under the Workers' Compensation Act for 364 9 weeks of permanent total disability based upon the employee's 10 average gross weekly wage prior to the date of the accident 11 and subject to the maximum weekly benefits provided in this 12 Act unless further fees shall be allowed to the attorney upon 13 a hearing by the Commission fixing fees. 14 (B-5) With respect to any and all proceedings in 15 connection with any disputed health care provider charges and 16 medical expenses associated with any initial or original 17 claim under this Act, no claim of any attorney for services 18 rendered in connection with the securing of compensation for 19 any health care provider, whether secured by agreement, 20 order, award, or a judgment in any court, shall exceed 20% of 21 the amount of compensation recovered and paid to any health 22 care provider. These fees shall be fixed pursuant to written 23 contract in accordance with subsection (C) of this Section. 24 In any proceeding including disputed health care 25 payments, in whole or in part, all health care providers 26 shall be given 30 calendar days notice by the employer prior 27 to a hearing to effect any award or settlement to submit all 28 outstanding bills. Any award or settlement payments for a 29 contested claim shall be made to the attorney involved in the 30 name of the attorney and health care providers. The attorney 31 shall disburse the funds to the health care providers 32 involved in accordance with the award or settlement. The 33 amount of health care provider payments shall be the usual 34 and customary charges under subsection 8(a), except when the -45- LRB9201790WHpc 1 amount of the award or settlement of a contested claim is 2 insufficient to compensate all health care providers usual 3 and customary charges. In these situations, all physician 4 payments shall not exceed 30% of the award or settlement, all 5 hospital payments (in-patient and out-patient) shall not 6 exceed 30% of the award or settlement, and all other health 7 care providers payments shall not exceed 20% of the award or 8 settlement. All health care providers shall share 9 proportionate amounts within their respective statutory 10 limitations as full and final payment for all sums due and 11 owing. In addition, usual and customary charges shall be 12 satisfied to extent possible for all health care providers 13 from amount unused within the statutory limitations on a 14 proportionate basis. 15 (C) All attorneys' fees in connection with the initial 16 or original claim for compensation shall be fixed pursuant to 17 a written contract on forms prescribed by the Commission 18 between the attorney and the employee or his dependents, and 19 every attorney, whether the disposition of the original claim 20 is by agreement, settlement, award, judgment or otherwise, 21 shall file his contract with the Chairman of the Commission 22 who shall approve the contract only if it is in accordance 23 with all provisions of this Section. 24 (D) No attorneys' fees shall be charged with respect to 25 compensation for undisputed medical expenses. 26 (E) No attorneys' fees shall be charged in connection 27 with any temporary total disability compensation unless the 28 payment of such compensation in a timely manner or in the 29 proper amount is refused, or unless such compensation is 30 terminated by the employer and the payment of such 31 compensation is obtained or reinstated by the efforts of the 32 attorney, whether by agreement, settlement, award or 33 judgment. 34 (F) With regard to any claim where the amount to be paid -46- LRB9201790WHpc 1 for compensation does not exceed the written offer made to 2 the claimant or claimants by the employer or his agent prior 3 to representation by an attorney, no fees shall be paid to 4 any such attorney. 5 (G) All attorneys' fees for representation of an 6 employee or his dependents shall be only recoverable from 7 compensation actually paid to such employee or dependents. 8 (H) Any and all disputes regarding attorneys' fees, 9 whether such disputes relate to which one or more attorneys 10 represents the claimant or claimants or is entitled to the 11 attorneys' fees, or a division of attorneys' fees where the 12 claimant or claimants are or have been represented by more 13 than one attorney, or any other disputes concerning 14 attorneys' fees or contracts for attorneys' fees, shall be 15 heard and determined by the Commission after reasonable 16 notice to all interested parties and attorneys. 17 (I) After reasonable notice and hearing before the 18 Commission, any attorney found to be in violation of any 19 provision of this Section shall be required to make 20 restitution of any excess fees charged, plus interest at a 21 reasonable rate as determined by the Commission. 22 (Source: P.A. 81-1482.) 23 (820 ILCS 310/16b new) 24 Sec. 16b. Reports. The Industrial Commission shall report 25 in writing to the Governor and the Illinois General Assembly 26 on the 31st day of December, annually, beginning one year 27 after the effective date of this amendatory Act of the 92nd 28 General Assembly, the details and results of implementation 29 of this amendatory Act of the 92nd General Assembly 30 sufficient to determine its effectiveness in maintaining the 31 availability of quality health care services for injured 32 employees and at a reasonable cost to employers. -47- LRB9201790WHpc 1 Section 95. Severability. The provisions of this Act are 2 severable under Section 1.31 of the Statute on Statutes. 3 Section 99. Effective date. This Act takes effect upon 4 becoming law.