In 2014, Tennessee implemented a series of reforms for the state’s workers’ compensation system, and since then, rates have decreased multiple times. If the latest request is approved, it will be the largest one yet. At the end of August, the National Council on Compensation Insurance (NCCI) filed for a 19.1 percent decrease for workers’ compensation voluntary market loss costs, reported Insurance Journal.
This latest filing follows a 12.6 percent rate reduction in 2017 and a 12.8 percent reduction in 2016. It’s based on the premium and loss experience for policy years 2015 and 2016—particularly a continued decrease in the lost-time claim frequency—and the rates would go into effect on March 1, 2019 if they are approved.
Under the 2014 reforms, a new administrative court system was created to handle workers’ compensation claims, thereby adjusting the process from a tort system to an administrative one. Medical treatment guidelines and a clarified standard for determining how much a workers’ medical condition contributed to an on-the-job injury were also established.
“NCCI’s recommended 19 percent decrease in the loss cost multiplier is welcome news for our state’s job creators,” said Jim Brown, NFIB Tennessee state director. “Since Tennessee’s 2014 reforms, NCCI filings have now totaled loss cost reductions of more than 55 percent, which shows how much the changes were needed. That said, we must continue to monitor our workers’ comp system closely so that it operates fairly and efficiently for employers and injured workers.”