Bill > H1285

This bill aims to establish a new method for calculating the minimum hourly labor rate that insurance companies must pay to auto repair shops in Massachusetts when processing insured motor vehicle damage claims. Under the proposed legislation, a repair shop would determine its minimum hourly labor rate by submitting either 100 sequential customer-paid collision repair orders or 60 consecutive days of such orders (whichever is less) to the insurer, and then calculating the average customer-paid hourly labor rate from those records. This calculated rate would become the minimum hourly labor rate the insurer must pay, taking effect 30 days after declaration and subject to potential audit and rebuttal by the insurer. If the insurer disputes the rate, they must propose an adjustment within 30 days, and if the repair shop disagrees with the insurer's proposed rate, they can file an action with the insurance commissioner. Importantly, the bill places the burden of proof on the insurer to demonstrate that the repair shop's declared rate is inaccurate or unreasonable. The bill also specifically prevents these collision repair hourly labor rates from being considered when insurers are evaluating programs to control costs and expenses. The insurance commissioner is required to develop implementing regulations within 90 days of the bill's enactment.

Budget and Finance, Business and Industry

https://malegislature.gov/Bills/194/H1285