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                                       May 23, 2013        2013  | 9 
   
  Tennessee workers' comp reforms aimed at system efficiency, predictability
   
 

On April 29, 2013, Tennessee Governor Bill Haslam signed into law Senate Bill 200, known as the Tennessee Workers’ Compensation Reform Act of 2013.   A major legislative priority for Governor Haslam, the bill is expected to make the workers’ compensation system more efficient and predictable, thereby improving Tennessee’s business climate. 

Certain amendments in the bill, including those providing for the adoption of rules and the appointment of personnel to manage the new administrative system, are effective immediately.  

  • By July 1, 2013, or as soon thereafter as is practical, the governor is required to appoint an administrator of the Division of Workers’ Compensation (DWC), now an independent unit.  It is anticipated that the current administrator of the DWC, Abbie Hudgens, will be appointed.  
  • One of the most significant provisions of Senate Bill 200 is the replacement of its court-based workers’ compensation dispute-resolution system with an administrative process.  This involves the creation of a new Court of Workers’ Compensation Claims to handle disputes involving job-related injuries or illnesses occurring on or after July 1, 2014.  The administrator is responsible for the appointment of a court clerk, at least 16 attorneys qualified to serve as workers’ compensation judges, and a chief judge on or after July 1, 2013.

The remaining provisions of the bill become effective on or after July 1, 2014.  Among them are a rewrite of the definition of causation with regard to  injuries, the creation of an ombudsman’s office to assist employees without attorneys, and an increase in the maximum benefit duration from 400 to 450 weeks.  Click here for a summary of key provisions of the Tennessee Workers’ Compensation Act of 2013.

Since the new law is not effective until July 1, 2014, the Tennessee state legislature will have another session during which to propose further changes if they so choose.  Sedgwick's subject matter experts will be closely monitoring for any further activity related to this legislation and will keep you apprised of the situation as it unfolds.

If you have questions about Tennessee Senate Bill 200, please contact your Sedgwick client services representative.

  
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Sedgwick Claims Management Services, Inc. is the leading North American provider of innovative claims and productivity management solutions. Sedgwick and its affiliated companies deliver cost-effective claims, productivity, managed care, risk consulting, and other services to clients through the expertise of more than 10,000 colleagues in 195 offices located in the U.S. and Canada. The company specializes in workers’ compensation; disability, FMLA and other employee absence; managed care; general, automobile and professional liability; warranty and credit card claims services; fraud and investigation; structured settlements; and Medicare compliance solutions. Sedgwick and its affiliates design and implement customized programs based on proven practices and advanced technology that exceed client expectations. For eight years in a row, Sedgwick has been awarded the distinguished Employer of Choice® certification, the only third-party administrator (TPA) to receive this designation. In 2011 and 2012, the company was named the Best Overall TPA by buyers of risk services through an independent survey conducted by Business Insurance. For more see www.sedgwick.com.

© 2013, Sedgwick Claims Management Services, Inc.

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Sedgwick Claims Management Services, Inc. • 1100 Ridgeway Loop Road • Memphis, TN 38120 • 800-625-6588

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