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House committee approves PIP auto-insurance changes aimed at reducing fraud; therapists and chiropractors warn of access and payment impacts
Summary
House Bill 416 passed the House Standing Committee on Banking and Insurance after a committee substitute that raises some PIP benefits, extends billing timelines, and applies a workers’ compensation fee schedule to many outpatient PIP reimbursements.
House Bill 416, presented to the House Standing Committee on Banking and Insurance by Representative Josh Burry, passed the committee as amended after a substitute and debate between insurers, a national insurance-fraud investigator, and health-care provider groups.
The substitute adopted in committee increased funeral PIP benefits to $5,000, raised the weekly-wage PIP benefit to $500, extended the deadline for submitting PIP billing from 45 days to 180 days, and included a prohibition on balance billing for consumers in certain circumstances. The substitute also directs that a workers’ compensation fee schedule be used for fee-setting of many outpatient providers for PIP claims; the committee substitute, as read aloud, included clarifying language that the bill does not adopt workers’ compensation claim-handling procedures.
Amy Phelps, a special agent assigned to Kentucky with the National…
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