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MA H494

Reforming labor rates paid by insurance companies to auto repairers in the Commonwealth


summary

Introduced
01/23/2017
In Committee
01/23/2017
Crossed Over
Passed
Dead
12/31/2018

Introduced Session

190th General Court

Bill Summary

Relative to the labor rates paid by insurance companies to motor vehicle repair shops. Financial Services.

AI Summary

This bill aims to reform the labor rates paid by insurance companies to auto repairers in the Commonwealth of Massachusetts. The key provisions are: (1) The Commissioner of Insurance shall set a minimum hourly labor rate that insurers must pay on insured claims for repairs made by registered motor vehicle repair shops. The rate shall be the average of the hourly rates paid by insurers in nearby states (Connecticut, New York, New Hampshire, Rhode Island, and Vermont), with some discretion to adjust it by up to 3% up or down. The Commissioner shall review and readjust the rate every 3 years. (2) The hourly labor rates set under this new section shall not be included when insurance companies consider programs to control costs and expenses under existing laws. (3) Sections 1 and 2 of the bill are repealed, and Section 3 takes effect on August 1, 2026.

Committee Categories

Business and Industry

Sponsors (4)

Last Action

Accompanied a study order, see H4785 (on 07/19/2018)

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