The Illinois Workers’ Compensation Commission is the governmental body that is empowered to hear disputed claims for injured workers. Initially, a claim is presented to an Arbitrator. Arbitration hearings are held in numerous locations throughout Illinois. Generally the Arbitrators will meet in a designated area once a month. Hearings are generally heard in the county seats of the locality where the injury occurred or the employer is located.

About 400,000 work related accidents occur in Illinois each year and less than 70,000 claims are filed with the Illinois Workers’ Compensation Commission.

Many of the cases pending before the Illinois Workers’ Compensation Commission are settled before a hearing is held. Statewide a total number of arbitration decisions issued in 2006 was 3,899.

After the Arbitrator issues a decision, either the employee or employer can appeal that decision to the Illinois Workers’ Compensation Commission, which is a three member board, which hears appeal from the Arbitrators. Approximately 50% of cases that are heard by the Arbitrator are appealed. those that are appealed, approximately 70% are affirmed with no change in the decision of the Arbitrator.

Following the decision of the Illinois Workers’ Compensation Commission, further appeals can be taken by the employer or the employee to the Circuit Court, Illinois Appellate Court, and then some cases to the Illinois Supreme Court. However, for an injured employee who works for the State of Illinois, the highest level of appeal would be the Illinois Workers’ Compensation Commission and no appeals are allowed to the Court system.

While there is much discussion over the cost of workers’ compensation and the effect of that upon employment in Illinois since 1990, adjusting for inflation the premiums have actually decreased 34%. It is also interesting to note that Illinois insurers writing workers’ compensation policies in the year 1996 experienced a 20% profit on their premiums, or total profits of $355 million. Since 1996 the profit margins of Workers’ Compensation insurance companies have not been published. The latest annual report of the Commission merely states: “The Illinois Workers’ Compensation insurance business in Illinois is profitable and highly competitive”(Illinois Workers’ Compensation FY 2006 Annual Report).

Out of the costs paid under the Workers’ Compensation Act, 42% of the costs represent payments for medical treatment.