Future of Tennessee Workers’ Comp Option in Question Amid Lawmaker Scandal

Legislation to create a workers’ compensation alternative in Tennessee is already facing serious setbacks in the new legislative session, despite being amended in 2015 and refiled in 2016. An emerging scandal involving one of the lawmakers sponsoring the bill may have hindered its second chance of getting through the state legislature.

However, advocates for workers’ comp options say their efforts in the state are not over yet and they are working with other legislators to get an alternative passed.

State lawmakers Sen. Mark Green and Rep. Jeremy Durham introduced bills to establish the Tennessee Employee Injury Benefit Alternative (TEIBA) during the 2015 session. The goal of the bill, they said at the time, was to give private employers in Tennessee the option to opt-out of private insurance plans. Instead, employers would create and implement their own either fully insured or self-insured occupational injury benefit plans for their employees.

The group worked with the Association for Responsible Alternatives to Workers Compensation (ARAWC) in developing the legislation, which was modeled after the option models currently utilized in Texas and Oklahoma. The opt-out model offers a cost savings to employers in the state, proponents said.

The bills were not passed in their original form by their state lawmakers in 2015. Opponents, including the Tennessee Workers’ Compensation Board, questioned aspects of the original bill and if employers would run responsible workers’ compensation programs.

Lawmakers amended and revised the option legislation with the intention of trying again this year, according to Green.

That plan may have been derailed since news broke of accusations against Durham by three different women who say they were sexually harassed by the lawmaker via text message. According to Tennessee media outlets, Durham has since resigned as the House majority whip and took a two week leave of absence. He is now being investigated by the State Attorney General.

A hearing that was scheduled in the House for the option legislation on Feb. 10 was cancelled and there doesn’t appear to be any intention of bringing back the legislation this session.

But ARAWC said its work on introducing an opt-out model isn’t done yet.

Sen. Green did not respond to requests from Insurance Journal on if he is still working to get the revised Senate version of the opt-out legislation passed.

However, a spokesperson in Green’s office said the bill wouldn’t be pulled out and heard this session. The bill was assigned to the General Subcommittee of Senate Finance, Ways & Means Committee in October.

Donelson said ARAWC has been in discussions with lawmakers, including Sen. Green. The group met with legislators in Nashville in early February and received “lots of positive feedback.” While there is no time table on when an opt-out bill will be introduced, Donelson said ARAWC continues to see increasing support for the option and will continue to work with legislators on a bill.