New Jersey: Assembly Panel Moves PIP Medical Fee Schedule Bill Opposed by Insurers

The Assembly Insurance and Financial Institutions Committee last week approved bill 9A-1821 that would effectively derail the adoption of a personal injury protection medical fee schedule, despite the unified opposition of property/casualty insurers.

NAMIC joined other insurers' trade associations in submitting a statement urging the legislators to hold the bill, but Committee Chairman Neil Cohen, who is a cosponsor of the bill, made it clear that he intended to move it. He indicated that he was not inclined at this time to push to have it considered by the full Assembly, but he wanted to move it to spur ongoing negotiations regarding aspects of the fee schedule.

In the joint statement, the trade associations described the problems associated with not having a fee schedule that controls medical costs and minimize administrative costs resulting from disputes over certain fees. They pointed out that insurers do not view the fee schedule adopted by the Department of Banking and Insurance as perfect. “Despite our concerns, we recognize that a comprehensive fee schedule will help eliminate many of the disputes between insurers and medical providers and reduce the need for expensive arbitration proceedings—all to the benefit of consumers,” the statement asserts.

Department spokeswoman Sheila Kenney told committee members that the department opposes the legislation because it would undo an intensive and thorough process conducted by the department to take input from all involved parties and develop a fee schedule.

The fee schedule adopted by the department has been challenged by medical providers. Its implementation has been stayed while the case proceeds in an appellate court.

Direct questions to NAMIC State Affairs Manager Paul Tetrault.

Posted: Tuesday, January 29, 2008 12:00:00 AM. Modified: Thursday, January 31, 2008 9:41:12 AM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.