Vegas Personal Injury Law Blog

The automobile insurance industry in the year 2009 has been negatively affected by our sour economy. The insurance industry warns that, by the end of this year, one out of six drivers will not be covered with automobile liability insurance. As a result of current rising unemployment rates, there has been a stunning rise in the number of drivers who are cutting back, or even dropping their automobile insurance coverage altogether, to save money. Therefore, we are looking at record numbers of uninsured motorist on our roadways across the nation.

Auto liability coverage is required in all states with the exceptions of New Hampshire and Wisconsin. In the past, the percentage of drivers without insurance coverage fell steadily until two years ago when the uninsured rate was 13.8%. But, starting in December of 2007, the uninsured rate spiked to 14.6%. The forecast is that the uninsured rate will be 16.1%, by the end of this year. This equates to 33 million licensed drivers across the country without any automobile insurance coverage, based on figures compiled by the Federal Highway Administration.

This phenomenon of increasing uninsured motorists is directly attributable to our challenging economy. An increase in unemployment of 1% results in an increase in uninsured motorists rate of more than three quarters of a percentage point. Many drivers who are unemployed cannot afford to maintain the minimum liability coverage required by state law. Food and rent become the primary financial concerns for these individuals. The average cost of an auto insurance policy was $72.25 per month ($867.00 annual premium) in 2007.

Uninsured motorists can face legal fees, fines, and penalties such as a suspension of their driver’s license. If they injure someone in a liability accident, they may be forced to file for bankruptcy. When economic pressures are high, uninsured motorists appear to be willing to accept these risks.

Obviously, it’s a bad idea to cut back on your auto insurance coverage during an economic recession. In fact, during economic recession, it is logical to increase your uninsured motorist and underinsurance coverages to protect yourself and others you care about. See my earlier post on UM/UIM Coverage.

The global financial crisis has negatively affected auto insurance companies. The reduced demand for auto insurance during the current financial crisis will result a very turbulent 2009 for the auto insurance industry. They may be required to raise their rates.

Grim economic times usually result in increased claims. People who would never think of filing an insurance claim, are more inclined to do so when they need money.

The current economic crisis has affected the demand for insurance. The reduced demand for auto insurance, results in diminished income to insurance companies. On the investment side, insurers have taken a massive hit. They are receiving much less income on their investments, because they are tied into th e stock market.

One way the insurance industry is reacting to the current recession is by denying more claims. They are also utilizing delay tactics on the settlement of auto accident claims. The more that they delay the more income they can earn in their reserves. They are settling claims for as little as they can. They must cut down the costs associated with litigating auto accident cases. You will see more auto insurance carriers utilizing in-house counsel rather than private counsel to handle auto accident cases to reduce their costs.

Considering all this, it is currently more difficult for your attorney to settle your personal injury accident case for fair and reasonable compensation. I have filed more lawsuits in the last two months on car accident personal injury claims than I ever have in the past. So, don’t blame your attorney, if your case doesn’t settle. Current economics may be directly affecting the settlement of your Personal injury claim.

Some information for this post came from an MSNBC report.

If you wait until you have settlement to report a Medicare Liability Claim, you will undoubtedly experience frustration.

The thing to do is to report the Medicare Liability Claim as soon as it comes into your office.  Start the process immediately.  This is true, even if Medicare pays no medical bills on a liability claim.  Currently, all insurance carriers, because of the financial penalties associated with the new Medicare guidelines, want something in writing from Medicare concerning the extent of their lien for all Medicare eligible claimants.  Otherwise, you may end up with Medicare as a payee on your settlement check.

If you wait until you have a settlement to report a Medicare Liability Claim, you will undoubtedly experience frustration.

The thing to do is to report the Medicare Liability Claim as soon as it comes into your office.  Start the process immediately.  This is true, even if Medicare pays no medical bills on a liability claim.  Currently, all insurance carriers, because of the financial penalties associated with the new Medicare guidelines, want something in writing from Medicare concerning the extent of their lien for all Medicare eligible claimants.  Otherwise, you may end up with Medicare as a payee on your settlement check.

The reporting process involves the following steps:

1. The first step is to call COBC (Coordination of Benefits Contractor) to report the claim over the phone.  (800)999-1118.  They are open Monday-Friday 8:00 a.m. to 8:00 p.m., Eastern time.  It is now much easier to reach a COBC representative.
2. After you do this you will be sent a Consent to Release form that must be signed by your client.  This gives you authority to obtain your client’s lien information from Medicare.
3. You will then receive a form which is printed in red. This form requires the same information that you gave COBC over the phone.  Your client must sign this form.
4. About 8 weeks later (if your lucky) you will the receive a conditional payment letter (CPL).  This lists the payments for medical bills that MSPRC believes are related to the liability claim.  Most often it contains all bills that are paid by Medicare subsequent to the date of the accident.  You must send a letter to MSPRC to challenge the relationship of any bills on this list to medical treatment related to the liability accident.  You will then receive a revised CPL, or you can file an appeal stating the reasons why all medical bills listed are not related.
5. After you reach a settlement, you give MSPRC the gross settlement amount, and your attorneys fees, costs.  MSPRC then computes a final lien amount.  You will receive a Final Demand Lien Letter from MSPRC after they receive your settlement information.  If this is not paid in a timely manner, interest will accrue on the the Medicare lien.

Medicare does take into consideration attorneys’ fees and costs incurred by the recipient in determining the final demand amount.  As a result, the conditional payment amount related to the liability claim will be reduced.

If you get the Medicare liability claim ball rolling at the beginning of your client’s claim, all you will need at the end of the claim is the Final Demand Lien Letter from MSPRC.

This Blawg has joined my partner, Donald C. Kudler’s, Blawg (Las Vegas Litigator at vegaslitigator.blogspot.com
as one of the Blawgs listed on Blawg.com.

Personal Injury claims involve many issues tha carry over into related areas of law. These areas of law include:

Traffic Laws and Traffic Citations
Third Party Insurance Coverage (the other party’s insurance)
First Party Insurance Coverage (the injured party’s insurance)
Insurance Bad Faith Law
Health Insurance Law
Medicare and Medicaid Law
Workers Compensation Law
Bankruptcy Law
Appellate Law

My Blawg posts will provide you with information covering the areas of law that are often associated with personal injury claims and litigation.

The Attorneys at Cap & Kudler (capandkudler.com) are experienced in all of these areas and are here to help our clients.