New Jersey: Senate Commerce Committee Urged to Hold PIP Medical Fee Schedule Bill

NAMIC has joined with the Insurance Council of New Jersey and other insurance trade groups in opposing legislation that would derail the implementation of a comprehensive personal injury protection medical fee schedule.

In testimony presented to the Senate Commerce Committee Dec. 3, the trade groups advised legislators that the fee schedule, which is also the subject of litigation initiated by medical providers just prior to its scheduled implementation, is necessary to continue the improvements to the auto insurance market that have resulted in substantial savings for drivers.

“We believe the implementation of this new comprehensive PIP Medical Fee Schedule, which is the product of many discussions between the Department of Banking and Insurance and all interested parties, is essential to the continued automobile insurance reform effort in the state,” the trade associations asserted in their testimony. “For years, New Jersey automobile insurers and their policyholders have suffered under a PIP reimbursement system that lacked adequate control over spiraling medical costs. Without the implementation of the fee schedule, the PIP reimbursement system will continue to be expensive, inefficient and anti-consumer.”

The trades’ joint statement notes that implementation of the fee schedule has already been delayed in litigation and requests that legislators “hold this bill today and let the judicial process run its course.”

Senate Bill 2402 is sponsored by Assemblymen Nicholas Scutari and Paul Sarlo. It is the counterpart to Assembly Bill 3703 sponsored by Assemblymen Neil Cohen and Jon Bramnick, which is eligible for a floor vote in that chamber.

Direct questions to NAMIC State Affairs Manager Paul Tetrault.

Posted: Tuesday, December 04, 2007 12:00:00 AM. Modified: Wednesday, February 01, 2012 1:05:41 PM.