The study examines several factors in the growth in medical care costs, including the shift toward more expensive treatment and diagnostic alternatives as well as dramatic increases inbilled charges for visits to many types of medical providers. The use of pain clinics, attorney involvement, and claim abuse were found to exacerbate the increases in medical care expenses.
"Medical care costs continue to escalate, especially among first-party claimants,"said Elizabeth Sprinkel, senior vice president of the IRC."Looking forward, the industry will need to continue its vigilance in contending with these expanding costs, particularly as it monitors the possible spillover effects from general healthcare reform."
The study, Auto Injury Insurance Claims: Countrywide Patterns in Treatment, Cost and Compensation, 2014 Edition, is the seventh of its kind conducted by the IRC collected data on more than 35,000 auto injury claims closed with payment under the five principal private passenger coverages. Twelve insurers, representing 52 percent of the private passenger auto insurance market in the Unites States, participated in the study. The report shows results on injury, medical treatment, claimed losses and total payments, attorney involvement, and the appearance of fraud and buildup.
For more detailed information on the study's methodology and findings, contact David Corum at 484-831-9046 or by email at irc@TheInstitutes.org. Copies of the study areavailable for $300for an electronic version, or $400for a printed copy. Visit IRC's website at www.insurance-research.org for more information.