In 2013, Tennessee legislation Senate Bill (SB) 200 introduced significant changes to its workers’ compensation system that impact key cost components. The overall goals of the 2013 reforms in Tennessee were to create a workers’ compensation system that is more equitable, more efficient, and easier to understand for all parties, as well as to help attract more employers to Tennessee. 

The reform bill changed several aspects of Tennessee workers’ compensation law. These changes included a revised definition of injury, adoption of an administrative system for resolving disputes, revisions to the method for calculating permanent partial disability benefits, new medical treatment guidelines and a drug formulary, and many other provisions. The reforms were effective for injuries after July 1, 2014. The medical treatment guidelines became effective January 1, 2016.

This report provides early evidence of the effect of the 2013 reforms on total costs per claim, indemnity benefits per claim, and attorney involvement. The report contains claims with up to 30 months of experience after the effective date of the reforms. The more complete picture will be seen at 36 or more months of maturity.

The CompScope™ series of reports provides ongoing annual monitoring of how indemnity benefits, medical payments, and benefit delivery expenses per claim change over time, as well as how the Tennessee workers’ compensation system compares with other study states on these key metrics.

The report covers injury dates from 2011 to 2016 and payments through the end of March 2017. For some important key metrics used in this report, we use data for injuries before 2011 to provide a broader context for evaluating the effects of changes related to the 2013 reforms in Tennessee. 

CompScope™ Benchmarks for Tennessee, 18th Edition. Evelina Radeva. April 2018. WC-18-13.

Copyright: WCRI