Aug 24
Florida’s No-Fault Claim Costs Rise
he Insurance Research Council recently released a study showing growth in both the frequency and cost of diagnostic tests and chiropractic treatment have helped hike personal injury protection claim costs in Florida. The study found that the average total claimed economic loss–mostly medical expenses–increased a whopping 18 percent from $8,289 in 2002 to $9,769 in 2005.
Average claim payments increased 24 percent, from $4,606 to $5,712. The period saw a general inflation increase of just 9 percent and medical services inflation of 13 percent.
The study, “Florida Auto Injury Insurance Claim Environment, 2007 Final Report,” looked at key cost-drivers in the no-fault system.One of the primary components was the increased use of magnetic resonance imaging, or MRI, scans. About one-fourth of personal injury protection claimants had an MRI in 2002, while that number increased to a third in 2005.
Another increase was for CT scans, computerized tomography; the average total CT charge increased 31 percent during the study’s time period.
The number of personal injury protection claimants making use of chiropractic services grew from 33 percent in 2002 to 44 percent by 2005. Average total chiropractic charges for those claimants went from $4,837 in 2002 to $6,510 in 2005, an increase of 35 percent.
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