Perez v. Illinois Workers' Compensation Comm'n
2017 IL App (1st) 170086WC
| Ill. App. Ct. | 2018Background
- Rocio Perez slipped at work on June 19, 2007, injuring her left knee and later receiving conservative care and surgery for a lateral meniscal tear.
- At arbitration the employer challenged causation; the arbitrator and IWCC initially found no causal connection; the circuit court affirmed; this court reversed on appeal (finding erroneous admission of employer expert testimony and that claimant met her burden).
- On remand the Commission awarded temporary total disability and loss-of-use benefits and ordered employer to pay medical expenses under 820 ILCS 305/8(a) and 8.2(e) but did not state an amount.
- A later remand hearing produced a Commission award of $17,857.96 for medical expenses, representing $17,597.96 paid by Cigna (the claimant’s then-husband’s insurer) plus $260 in claimant out-of-pocket payments; the Commission relied on the negotiated/paid amounts rather than the higher stipulated fee-schedule total.
- The circuit court confirmed the Commission’s remand decision; Perez appealed, arguing the employer should have to pay fee-schedule amounts rather than the lower third-party negotiated/paid amounts.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether employer must pay medical charges based on fee-schedule amounts or the negotiated/paid amount by a third-party insurer | Perez: employer liable for negotiated rate only if negotiated by employer or its insurer; otherwise fee-schedule applies | TFN: plain statutory text requires employer to pay the negotiated rate or the lesser of actual charge or fee-schedule, so employer owes only the amount actually paid under a negotiated rate—even if negotiated by a third party | Court: Affirmed Commission — employer liable for negotiated/paid amount ($17,857.96); statute unambiguous and does not limit who may negotiate the rate |
Key Cases Cited
- Cassens Transport Co. v. Illinois Industrial Comm’n, 218 Ill. 2d 519 (statutory construction of Workers’ Compensation Act reviewed de novo)
- Tower Automotive v. Illinois Workers’ Compensation Comm’n, 407 Ill. App. 3d 427 (an employer satisfies section 8(a) by paying the amount actually paid to providers under a negotiated agreement)
