Bill > H1260

This bill establishes a new process for determining the minimum hourly labor rates that insurance companies must pay to auto repair shops in Massachusetts for insurance-covered repairs. Under the proposed law, repair shops would calculate their minimum labor rate by submitting either 100 sequential customer-paid collision repair orders or 60 consecutive days of such orders, whichever is less. The average of these customer-paid hourly labor rates would become the minimum rate that insurers must pay the repair shop. This rate would take effect 30 days after declaration, subject to potential audit and rebuttal by the insurance company. If the insurer disputes the rate, they must propose an adjusted rate within 30 days, and if the repair shop disagrees with the proposed rate, they can file an action with the Massachusetts Commissioner of Insurance. Importantly, in any such action, the insurance company would bear the burden of proving that the repair shop's initially declared rate was inaccurate or unreasonable. The bill also explicitly prevents these labor rates from being considered when insurers are evaluating cost control programs, and requires the Commissioner of Insurance to develop implementing regulations within 90 days of the bill's enactment.

Budget and Finance, Business and Industry

https://malegislature.gov/Bills/194/H1260