A closer look at the impact of auto insurance reform on drivers
Auto insurance reform was desperately needed in
In 1978, the
But the amount of money needed to cover catastrophic claims has ballooned over the years, with the amount assessed by the MCCA rising from
Nesbitt said the 2019 law allows drivers to choose not to have PIP coverage at all if they have health insurance or to choose from four levels of PIP coverage.
“Drivers could still choose the Unlimited Lifetime Benefit, they could choose a
Drivers could start making these choices
The rates assessed by the MCCA for people who elected to continue to have unlimited PIP fell to
Insurers and health care
Another part of the 2019 law, which came into force on
Nesbitt said something had to be done to get health care costs under control.
“There was a massive overcharge for car insurance accident victims and there was no choice in the system,” he said. “…We stopped the price hike that was happening. You could see, whether it was hospitals or other healthcare or long-term care, where they were charging two to three to four times as much for different procedures or care…for auto injury claims.”
Nesbitt said those injured before the new law took effect will continue to receive care, but the fee schedule has been put in place to control costs.
“There are a lot of tragic accidents that the system has covered without question for a long time,” Nesbitt said. “And we need to continue to provide quality of care to ensure a quality of life that doesn’t overburden drivers here in the state. That’s the goal and that’s what I’m going to continue to monitor.”
She said the reduction in auto insurance reimbursement has forced many home health care agencies, including Private Duty, to continue serving their auto insurance clients at a loss or abandon them as patients. .
Nesbitt said several bills have been introduced to change the law, but they are not on the fast track.
“People want to say, ‘Let’s give it some time. Let’s make sure the competition comes in before we change anything,'” he said.
“We were diligent in getting the director of the
He said his constituents can contact him if they have a problem so he can better understand their situation.
“If necessary, we will change the law because we are certainly looking to improve the law,” Paquette said.
Nesbitt said people and providers who have trouble paying for care can call the
“Insurers will have about 48 hours to respond in the event of a lack of care,” he said.
Additionally, Nesbitt said state lawmakers created a fund last year to provide financial support to health care providers who can show they are losing money caring for people injured in crashes. of the road.
“We’ve actually set up a
When he last checked, Nesbitt said only one provider had applied to the fund.
Rhein said the application process for the fund is long and most healthcare providers can receive a one-time payment of
“To access this fund, you must first file a complaint with the DIFS and be denied,” she said. “It’s a long process that takes a few months. And then you have to file a usage review appeal through DIFS and share full financial information about your business and basically prove there’s no possible way to do what you did for less. And then you have to be denied for that. After you’ve been denied for that, you can apply to this fund.
Rhein said she spent many unreimbursed administrative hours over three months last year during the first stage and was turned down.
“The process you have to go through even to apply can take up to six months,” she said. “Meanwhile, you are just supposed to take a loss for six months in the hope that you can get paid out of the fund.”
She said she didn’t know if she would take the next step.
“We are trying to operate during a pandemic,” she said. “Most of the time I can’t work on it because I’m trying to figure out if I can send staff to work or if I have to quarantine them and who can go where safely.”