Washington, DC – The American Insurance Association (AIA) applauded the signing of S.B. 200, The Tennessee Workers’ Compensation Reform Act of 2013, by Governor Bill Haslam (R-TN). S.B. 200 contains measures which will improve the efficiency of the Tennessee workers’ compensation system for both employees and employers. These measures include: moving from a court-based adjudication system to an administrative one; authorizing the adoption of medical treatment guidelines; improving the flow of medical information; and changing the method for calculating permanent partial disability (PPD) benefits.
“AIA applauds Gov. Haslam for signing S.B. 200 into law and for his continued leadership throughout the legislative process,” said Ron Jackson, AIA Southeast region vice president. “The Act is the right approach to providing much needed reform to Tennessee’s workers’ compensation system.”
One key component of the reforms is the movement from a court-based adjudicatory system to an administrative-based one. An administrative system that provides for streamlined dispute resolution is far more compatible with the no-fault nature of workers’ compensation than the cumbersome tort system. Prior to the enactment of S.B. 200, Tennessee was one of the last states to have a court-based claims adjudication process.
“AIA is especially pleased with the provision that will create an administrative adjudicatory system. This provision, along with others improving the flow of medical information and authorizing the adoption of medical treatment guidelines, will significantly improve the workers’ compensation system if properly implemented. We look forward to working with policymakers on its implementation,” said Jackson.
Certain provisions, such as those providing for the adoption of rules and the appointment of personnel to staff the new administrative system, will take effect immediately. The remaining provisions of the bill will become effective on July 1, 2014.
Source: AIA