Automobile Accidents and Related Medical Costs

Susy Owen

Attorney

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Yesterday, lawmakers moved to kill pending state regulations that would cut how much doctors can charge automobile insurers for treating accident victims. The proposed bill would regulate costs on more than 1,000 medical procedures that are automoblie related.

"We would argue the reimbursement rates are inflated but recognize that the fee schedule currently pending before the department is a better alternative than the current system," said Magdalena Padilla, president of the Insurance Council of New Jersey, which represents most of the state's auto insurers.

On the other hand, when it comes to automobile accidents and related medical treatment, medical providers feel that such a bill would make it more difficult for patients to get care. In spite of a written request by the insurance department to postpone action, the Assembly Financial Institutions and Insurance Committee yesterday cleared a bill that would stop the department from proceeding further.