Tennessee House Bill HB2306

Tennessee 2023-2024 Regular Session

• Introduced: 1/29/24
• Refer: 2/14/24
• Refer: 2/20/24
• Refer: 3/5/24
• Engrossed: 3/14/24
• Enrolled: 3/22/24
• Passed: 4/9/24
• Chaptered: 4/17/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 12; Title 48; Title 50 and Title 56, relative to self-insurance.

Impact

The bill significantly modifies Tennessee's existing regulations on self-insurance by mandating that all participating employers must contribute to the association, which may assess costs to cover liabilities resulting from unpaid claims. This setup is intended to prevent the financial fallout for employees from the collapse of a self-insured employer, thus addressing the risks associated with self-insurance practices more robustly than before. It highlights the state's commitment to protecting workers' rights while simultaneously providing a structured approach to managing the potential insolvencies of self-insured employers.

Summary

House Bill 2306, also known as the Tennessee Self-Insurers' Guaranty Association Act, aims to create a framework for managing the financial responsibilities of self-insured employers regarding workers' compensation claims. The bill establishes a non-profit legal entity, the Tennessee Self-Insurers' Guaranty Association, which provides financial protection to ensure that claimants receive their benefits promptly, even in cases where a self-insured employer becomes insolvent. This initiative is directed at safeguarding the rights of employees and ensuring timely payments at all levels of self-insured claims.

Sentiment

The sentiment regarding HB 2306 appears generally positive among those advocating for employee protections and stability in the workers' compensation system. Proponents argue that the bill will introduce necessary safeguards for claims processing and financial accountability in self-insured arrangements. However, some stakeholders express concerns about the bureaucratic implications and the potential financial burden imposed on self-insuring employers, especially smaller businesses that may struggle to meet the association’s assessment requirements.

Contention

Notable points of contention include the potential for increased costs for employers who self-insure due to the annual assessments imposed by the association. Additionally, critics raise concerns about the administrative complexity the new association might create, which could limit the flexibility that some self-insured employers currently enjoy. Overall, the discussion reflects a balancing act between enhancing worker protections and maintaining a viable operational framework for self-insured entities in Tennessee.