Residents in the state of Michigan are no strangers to the fact that the cost of their auto insurance premiums has been on the rise. In fact, The Detroit Free Press reported that auto insurance premiums in Michigan have been increasing since the year 2009. Insure.com provided information showing that Michigan’s auto insurance rates were the most expensive and for the previous six years Michigan’s rates have been among the top three of the nation.
Several factors come into play regarding these increasing auto insurance premiums but perhaps the largest factor involves Michigan’s one of a kind automobile no-fault coverage benefits. Other states in the country offer a variety of no-fault benefits under an auto insurance policy but Michigan is the only state to pay all reasonable charges for reasonably necessary products, services, and accommodations for the injured persons’ care, recovery or rehabilitation arising out of a motor vehicle accident. The medical expenses are payable for life and are unlimited in amount. Work loss benefits are payable for up to three years from the date of the auto accident.
Michigan’s generous auto no-fault coverage is unique and allows for much more effective indemnification of claimants, which is the primary responsibility of an insurance company administering auto no-fault claims. These unlimited benefits do come with a significant price tag however and this can be a challenge for insurance companies to mitigate, particularly when it comes to claims involving prescriptions for medications, medical supplies, durable medical equipment, orthotics and prosthetics, transportation, home modifications, and infusion/home health care services.
Claims with injuries requiring these medical services present additional challenges to insurance companies in terms of cost. Modern technology has allowed claimants to recover from catastrophic injuries in their homes with the help of home health care workers which can improve overall claimant outcomes. New prescription medicines can further expedite the healing process for claimants. However, neither of these necessary services are inexpensive and insurance companies may have trouble controlling these costs on their own.
An experienced third-party administrator (TPA) of auto no-fault claims can greatly control claims costs for insurance companies. A TPA will enact a pre-authorization process on all claims involving auto-related products, services, and accommodations and ensure that all medical services are injury related. In the case of homebound claimants requiring these services, the TPA should also offer a delivery service to ensure claimants receive the appropriate medicines.
Northwood acts as a TPA of auto no-fault claims on behalf of an insurance company and provides a myriad of benefits to both the insurance company and its claimants. Perhaps the most readily implemented benefit involves the access granted to a thoroughly credentialed network of medical services providers. These providers offer quality home health care and prescriptions to claimants at a greatly reduced rate which saves money for the insurance company. Claimants and adjusters using the provider network for injury-related services will avoid having their claimants pay any out-of-pocket costs which in turn eliminates confusion and saves time, both of which drive claimant satisfaction levels.
If you would like more information about reducing auto no-fault claims costs, please contact Northwood/Rosanne Brugnoni at 586-755-3830 ext. 3771 at your earliest convenience.
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