Reform Flourishes in Two States

When we chatted by phone recently, Tennessee Gov. Phil Bredesen (D) had an air of excitement in his voice.

No, I don’t necessarily think it was because he was talking with me, but more the fact that help was on the way for the Volunteer State in the form of workers’ compensation reform.

As noted in the interview with the Governor that begins on Page 32, Tennessee sat second only to Texas in medical costs according to the Workers Compensation Research Institute (WCRI). Tennessee has been one of the few (8) remaining states without a medical fee schedule for workers’ comp. SB 3424, the bill that recently worked its way to the Governor’s desk, requires among other things the state to form a medical fee schedule for all medical services, although it leaves all issues regarding design to the regulatory process.

Along with several other items of interest, it most importantly puts Tennessee back on the map as a place to do business in.

As Bredesen noted, “I was certainly getting feedback that some companies were reducing their employment in the state and putting it in other places because of these costs. When I looked at it, it seemed particularly acute in the manufacturing field and of course we’re a state that has a substantial economic base in manufacturing like a lot of southeastern states.”

Things should ease up now and Tennessee will be the benefactor of workers’ comp reform.

Down the road in Mississippi, Cecil Pearce, vice president of the Southeast region for the American Insurance Association (AIA) reports on Page 38 in the “Parting Shots” column that the Magnolia State is on the way to tort reform.

As Pearce noted, leading groups within the state, such as Mississippians for Economic Progress, the Mississippi Economic Council and the Independent Insurance Agents of Mississippi implemented strong public affairs and grassroots programs to educate voters and keep the pressure on legislators. “We put together a strong lobbying team with a simple—if powerful—agenda: passage of a comprehensive bill that included venue and joinder reform, caps on non-economic damages, fair share liability and innocent seller defense,” Pearce said.

The House and Senate approved a landmark civil justice reform bill that went to Gov. Haley Barbour earlier this month that should lead to a civil justice environment in Mississippi that is once again fair and balanced—a welcome development for insurers and their customers.

Good news does abound this time around, and speaking of the news, we hope you enjoy your latest issue, and we’ll talk to you soon.

Topics Workers' Compensation Mississippi Tennessee