Bill > S2262

This bill proposes to establish a minimum hourly labor rate for auto repairs paid by insurance companies in Massachusetts, with the Commissioner of Insurance tasked with setting this rate. This minimum rate will be determined by averaging the hourly labor rates paid by insurers for motor vehicle damage repairs in neighboring states like Connecticut, New York, New Hampshire, Rhode Island, and Vermont, using data from independent collision repair estimating services. The Commissioner will have the discretion to adjust this average rate by up to 3% in either direction and must review and potentially readjust the rate every three years, reporting any proposed changes to the joint committee on financial services 15 days prior to implementation. Additionally, the bill clarifies that these collision repair labor rates will not be considered when insurance companies evaluate programs to control their overall costs and expenses. However, it's important to note that Sections 1 and 2 of this act, which contain these provisions, are scheduled to be repealed on August 1, 2024.