Crisis Predicted In No-Fault’s Unlimited Coverage
|By Daly, Pete|
A study of almost 1,100 no-fault auto injury insurance claims in
"Without any type of fee schedule or negotiated rates for the care providers, the current system is unsustainable and headed for a crisis," said Blackwell, president of
A few weeks ago, the
Created by the state legislature in 1978, the MCCA is a private, nonprofit association that protects
All auto insurance companies operating in
The MCCA paid out
"The rating organizations are starting to become concerned about the health of our insurance companies in
Last year House Bill 4936 was introduced in the
Blackwell said HB 4936 has been reported out of committee but has not gone further.
"One of the sticking points seems to be the hospitals' and care providers' reluctance to looking at a fee schedule or something of that sort. That seems to be the obstacle."
In March, State Rep.
He said the MCAA board is made up of representatives of
With the weak economy, the cost of auto insurance and the increasing cost of catastrophic care, "maybe there would be a different result today. I don't know," said Blackwell.
Blackwell said the
The MAIA supports the establishment of a medical fee schedule for PIP coverage of automobile accident-related injuries, and he noted as an example that the Workers' Compensation fee schedule has been "successful in constraining health care costs for that program."
A fee schedule for PIP injuries could save the consumer more than 10 percent on full-coverage auto insurance, in the estimation of the
MAIA also supports containment of the cost of attendant care for those with catastrophic injuries resulting from a car crash, according to Blackwell. He said attendant care makes up almost a third of all MCCA-related costs, and relatives who provide care to catastrophic accident victims can be compensated 24 hours per day, seven days a week.
Although agents recognize the severe stress a catastrophic accident can place on any family, common sense criteria for hours compensated and costs per hour for basic care should be enacted for unlicensed caretakers, according to Blackwell.
The MAIA also supports legislation to clarify language because of
Also, lawsuits for non-economic "pain and suffering" awards have a significant impact on auto insurance premiums in the state, and more specific language is needed, he said.
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