New Jersey to Consider Changes to Car Insurance LawsHoping to curb rising
car insurance premiums,
New Jersey lawmakers have proposed changing the requirements for personal injury coverage as it pertains to auto insurance.
The changes would affect the process by which doctors bill insurance companies for treating policyholders.
Though New Jersey is a state where buying auto insurance has traditionally been a costly proposition, the years following 2003 were marked by low insurance rates due to changes instituted by former-Governor James McGreevey. In recent years, the high costs of personal injury claims have forced costs back up.
Personal injury protections cover medical costs incurred during a car accident and is required by the state. The New Jersey
State Department of Banking and Insurance claims that last year insurers spent $1.23 on the dollar paying out on claims.
Lawmakers have discovered that several doctors have managed to charge more than the insurance companies allow for a specific treatment by performing procedures that are not on the list of procedures covered for personal injury claims.
They also want to take a look at legal fees for insurance claims disputes.
New rules would expand the list of common procedures that are covered under personal injury claims, making it harder for doctors to find ways to pencil in their own prices. If the changes go into affect, doctors would only be able to bill for a procedure that is a proven, effective solution for the policyholder’s injury.
The process for appealing denied insurance claims will also be subject to change. In order to save on pricey legal fees, all requests for appeals will first be subject to internal review by the insurance provider before moving on to arbitration.
Not surprisingly, the insurance companies will benefit the most from the proposed changes. Closing these loopholes would save money that is going into legal costs and paying crooked care providers. Of course, no one knows if the savings will turn into lower rates for consumers.