NCCI reminded us that Workers Comp fee schedules do work as TN and IL advisory (loss cost) rates were significantly lowered. Earlier this week, according to NCCI Tennessee’s recommended rate was reduced by 5.1%. NCCI followed suit with IL recommending a 3.8% rate cut.

All of the Workers Comp bloggers such as me always like to publish when we were correct on a controversial subject. TN had enacted a fee schedule a few years ago. As with most WC changes, the bottom line results usually appear three to four years later.

I predicted in an article from December 2009 on Tennessee's new fee schedule that there will be an eventual decrease in rates. This did exactly occur on cue. This one reduction in rates will help TN's small businesses stay afloat in a very difficult economy.

TN used to be so very expensive for Workers Comp coverage. The state is now becoming more competitive due to the reduction in WC rates.

I was more skeptical about IL as when I first investigated Illinois's fee schedule, it seemed to be more of a synthetic fee schedule. At the time, the fee schedule was not based directly on any anchor point such as the Medicaid/Medicare rates.

The fee schedule was changed along the way to be less synthetic. I was not sure if this was actually going to save any $. Illinois medical costs were decreasing in a post I wrote in 2/2012. In monetary figures, the changes will save IL employers $91 million.

Congrats to TN and IL. There is actually a way for your Workers Comp claims to receive further discounts on your medical costs. Check back with me tomorrow.