The state of Tennessee has finally began the process to reform the workers compensation laws which has not happened in decades. The changes will take effective on July 1, 2014.
The purpose of these changes are to speed up the claims process and to make the state more attractive to insurers and employers.
Some of the changes that are being made are to the constitutional law, administrative structure and to the courts. They will be creating a new administrative courts system to handle all workers compensation claims. Tennessee is one of only 2 states that currently adjudicate workers compensations claims in the trail courts.
These new changes will help produce more consistent results and quicker claims payouts for injured workers. Legislation will include enhanced medication, determination of permanent or partial disability benefits, introduction guidelines, a new penalties and new reporting requirements.
Additional Tennessee workers comp changes include:
1. Eliminating the requirement for an injured employee to select a treating physician in writing
2. Specifying that temporary total disability benefits paid to an injured worker before the worker attains maximum medical improvement will not be included in calculating the maximum total benefit
3. Replacing the formula for determining an award of permanent disability
4. Modifying the statute of limitations criteria for filing a workers’ compensation suit
5. Replacing the benefit review conference with a system of alternative dispute resolution.
source: (SHRM.org)
The new changes will help encourage employers to continue to do business in the state of Tennessee and help them to implement better safety practices and return to work programs.
For injured workers, they will see a quicker processing of claims and a quicker turn around time for compensation payout.
Insurance carriers should be more inclined to write business in TN since there will be clearer rules and regulations. Business owners will have less incentive for the TN Workers Comp Exemption. Currently, there are so many uncertainties and gray areas that many workers comp carriers do not want to write business in the state of Tennessee.
I believe that these changes are going to have a positive impact for the state of Tennessee for a number of reasons: Carriers will be more inclined to write new business in the state, manual rates will decrease as these new laws take effect, new companies will open their doors creating new jobs and employers will see a fairer, non-biased claims process.
Start a Tennessee workers comp quote and see if you can save money on your coverage.