New Jersey Manufacturers Insurance Company

WEST TRENTON, N.J. — Legislation that would eliminate reasonable controls on medical cost increases for the treatment of auto accident injuries received approval from a State Senate committee December 3, and could be considered by the entire Senate very soon.

Policyholders are reminded of several key points regarding this issue:

NJM operates strictly for the benefit of policyholders, and it is their premium dollars that pay for this treatment. A predictable system for knowing how much treatment will cost serves to make sure policyholder resources are used wisely.
The excessive medical fees can erode the value of your Personal Injury Protection (PIP) coverage limit.
The PIP Medical Fee Schedule compensates doctors at rates well above those of private medical insurance carriers. It is unlikely doctors would refuse to accept Fee Schedule rates to treat accident victims, as these are more generous than negotiated rates already accepted as payment in full by medical practitioners.
Specialists who are "on call" to provide treatment in case of auto accident injuries would not be affected, as trauma/emergency room services are not part of the Fee Schedule.

The legislative bill (A-3703/S-2402) that would repeal the PIP Medical Fee Schedule could appear on the agenda for voting sessions scheduled in early January, before the new Legislature is seated January 8, 2008. NJM has been urging legislative leaders not to post this bill for a floor vote in the entire Senate and Assembly.

In a letter sent in late November New Jersey Manufacturers Insurance Company, New Jersey's largest insurer of private passenger vehicles, asked its approximately 400,000 Personal Auto policyholders to help oppose that bill. Although the measure has now moved through the committee process, it's not too late to keep it from becoming law. Policyholders are encouraged to write their own personal messages to legislative leaders using this e-mail link.

About Us Links

Directions