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Fees For Workers’ Comp to Affect NY Drivers Says Insurers

Posted on Nov 15, 2010

The proposed increase in workers' comp fees for medical providers that give treatment to the state's workers comp cases may have a negative impact on NY drivers. This news comes from the Property Casualty Insurers Association of America.

The PCI sent a letter to the New York State Workers' Compensation Board to express their worries about the impending affect the changes to the workers' comp fee schedule for medical providers will have on the state's auto insurance policy holders. As a result of the changes, those who carry auto insurance coverage likely will have to pay higher costs because the workers' comp fee schedule also applies to medical services provided under no-fault auto coverage.

The proposed increase is said to reach a 30% increase in fees for evaluation and management fees for medical services and an further increase of up to 42% for chiropractic services.

In addition to the fee increase concerns, there is also a warning of increased fraud in the no-fault system. The system is already rocked by fraudulent claims and abuse brought about by the providers of medical services. Through the no-fault system there are not guards in place to protect against fraud as there is in the workers compensation system. The group hopes the board will consider how the dramatic rise in costs will affect the auto insurance policy holders in the state.

The costs for medical claims for auto insurance have ‘skyrocketed' in recent years. From 2004 until now, the amount paid out for auto accident-related medical claims have risen more than 60%, faster than all other no-fault states.

Workers' Comp Attorney New York