Gov. Bill Haslam’s pro-business workers’ compensation reform legislation sailed through committees in the House and Senate last week and is headed for the next round of hearings in both chambers this week.
Rep. Jimmy Eldridge, chair of the House Consumer and Human Resources Committee, said the “Workers’ Compensation Reform Act of 2013” must pass through four more committees before reaching the House floor.
“I’d like to see this bill go to give all the members of the Tennessee General Assembly on the House side the opportunity to engage in the conversation and good debate on this important piece of legislation,” said the Republican from Jackson.
“Where we’re messing up is in our medical costs. This bill doesn’t address that at all,” Democratic Caucus Chair Mike Turner told the committee. “I don’t care what they tell you, they’re not telling you the whole truth about this bill.”
Jeff Bates, managing partner of TA Staffing in Nashville, and Brian Hunt, general manager of Southern Champion Tray in Chattanooga, both addressed the House committee in favor of the reforms.
Bates said 10 percent of the claims his company sees take 75 percent of money paid out for workers’ comp.
“You have to protect the truly injured worker, but at the same time you can’t have lingering claims controlling and bogging down the system to the point where it costs three to four times as much to settle a claim in Tennessee as it does in other states,” Bates said.
Hunt said 70 percent of the injuries at his company are “categorized as strains and sprains. They also account for 79 percent of our compensation dollars.” He noted that over the past five years the company has shelled out indemnity payments totaling nearly $1 million.
Rep. Kevin Brooks, who presented the bill on behalf of House sponsor Rep. Gerald McCormick of Chattanooga, said these issues emerged from a two-year study:
- Tennessee’s rates are higher than neighboring states.
- Employees are being harmed by lengthy delays in the current system.
- Employers and employees are having trouble “navigating what is a complex and difficult workmans’ compensation system.”
Rocky McElhaney, a Nashville attorney who spoke on behalf of the Tennessee Association for Justice, said higher costs were a “red herring” to distract from harm to workers.
“Since the 2004 reforms, benefits paid to injured workers in Tennessee have already decreased 41 percent,” McElhaney said. “We’re paying workers less on average than our competing states.”
McElhaney said payments to physicians are actually what’s driving costs. He said state statistics showing how long cases take to adjudicate were skewed because only a sampling of cases were used.
In 2012 cases took 166 days start-to-finish on average, down from 309 days in 2008, McElhaney said, citing data from the Administrative Office of the Courts.
Rep. Glen Casada disputed the claim that the bill is heavily skewed toward employers.
“We as legislators must look at the macro of this, which is when Goodyear leaves, and their number one statement on why they left was workmans’ comp costs,” the Franklin Republican said. “All of a sudden, we’re not looking at dozens, we’re looking at 1,900 that are no longer here in Tennessee working.
“If that were to have a ripple effect, Bridgestone, Nissan – and I could go down the list – all of a sudden thousands of folks that work no longer have jobs in Tennessee. That is my concern.”
HB 194 goes before the House Government Operations Committee Tuesday. SB 200 goes before the Senate Government Operations Committee Wednesday.