Posted on 24 Nov 2009
Monday's New Jersey Supreme Court decision to uphold an appellate court ruling in favor of the New Jersey Department of Banking and Insurance and allow the new Personal Injury Protection (PIP) medical fee schedule to be implemented will help the state move forward with reform to the PIP reimbursement system, according to the Property Casualty Insurers Association of America (PCI).
“The New Jersey Supreme Court decision made a sound decision today,” said Richard Stokes, counsel for PCI. “Implementing the medical fee schedule recommended by the Department of Banking and Insurance will go a long way toward containing the rising health care costs associated with auto accidents that are contributing to the high cost of auto insurance in the state.”
The Insurance Department used a methodical process to develop new PIP medical fee schedule, carefully examining what doctors are typically paid and setting the new fees well above the prevailing rates.
“The new PIP medical fee schedule will create a fair system that ultimately delivers cost savings for auto insurance policyholders,” said Stokes.