Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H1035 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 2
2	2	HOUSE DOCKET, NO. 1950 FILED ON: 1/19/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 1035
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	James K. Hawkins
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act to establish minimum reimbursement rate to insurance claimants.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:James K. Hawkins2nd Bristol1/19/2023Alan Silvia7th Bristol1/26/2023Brian W. Murray10th Worcester1/29/2023Angelo L. D'Emilia8th Plymouth1/30/2023John H. Rogers12th Norfolk1/31/2023Angelo J. Puppolo, Jr.12th Hampden1/31/2023Michael J. Finn6th Hampden1/31/2023Brian M. Ashe2nd Hampden2/2/2023Paul K. Frost7th Worcester2/3/2023Patricia A. Haddad5th Bristol2/3/2023Susannah M. Whipps2nd Franklin2/6/2023Mathew J. Muratore1st Plymouth2/6/2023Michael P. Kushmerek3rd Worcester2/6/2023David F. DeCoste5th Plymouth2/7/2023John J. CroninWorcester and Middlesex2/8/2023Jacob R. OliveiraHampden, Hampshire and Worcester2/8/2023Colleen M. Garry36th Middlesex2/9/2023Josh S. Cutler6th Plymouth2/13/2023 2 of 2
16	16	Christopher M. Markey9th Bristol2/13/2023Kathleen R. LaNatra12th Plymouth2/13/2023Adam Scanlon14th Bristol2/13/2023Peter Capano11th Essex2/13/2023Marc T. Lombardo22nd Middlesex2/14/2023Lindsay N. Sabadosa1st Hampshire2/14/2023Steven S. Howitt4th Bristol2/14/2023Patrick Joseph Kearney4th Plymouth2/15/2023Donald R. Berthiaume, Jr.5th Worcester2/15/2023Paul McMurtry11th Norfolk2/15/2023Bruce E. TarrFirst Essex and Middlesex2/16/2023Jennifer Balinsky Armini8th Essex2/16/2023Peter J. Durant6th Worcester2/21/2023Rob Consalvo14th Suffolk2/24/2023Jonathan D. Zlotnik2nd Worcester3/1/2023Marcus S. Vaughn9th Norfolk3/7/2023James C. Arena-DeRosa8th Middlesex3/7/2023Anne M. GobiWorcester and Hampshire3/9/2023John F. KeenanNorfolk and Plymouth3/9/2023Ryan C. FattmanWorcester and Hampden3/9/2023James B. EldridgeMiddlesex and Worcester3/9/2023 1 of 2
17	17	HOUSE DOCKET, NO. 1950 FILED ON: 1/19/2023
18	18	HOUSE . . . . . . . . . . . . . . . No. 1035
19	19	By Representative Hawkins of Attleboro, a petition (accompanied by bill, House, No. 1035) of
20	20	James K. Hawkins and others for legislation to establish a set of minimum reimbursement rates
21	21	for labor by insurers to claimants for first- or third-party motor vehicle insurance claims in the
22	22	Commonwealth. Financial Services.
23	23	[SIMILAR MATTER FILED IN PREVIOUS SESSION
24	24	SEE HOUSE, NO. 1111 OF 2021-2022.]
25	25	The Commonwealth of Massachusetts
26	26	_______________
27	27	In the One Hundred and Ninety-Third General Court
28	28	(2023-2024)
29	29	_______________
30	30	An Act to establish minimum reimbursement rate to insurance claimants.
31	31	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
32	32	of the same, as follows:
33	33	1 The purpose of this bill is to establish a set of minimum reimbursement rates for labor by
34	34	2insurers to claimants, for first- or third-party auto insurance claims in the Commonwealth. The
35	35	3newly calculated minimum reimbursement rate to the claimant will be determined by identifying
36	36	4the rate at the time of the Insurance Reform Act of 1988 adjusted to the rate of inflation to the
37	37	5time and promulgation of this bill becoming law.
38	38	6 The newly established minimum reimbursement rates will be phased in over a two-year
39	39	7correction period, which will begin within 30 days of the promulgation of this law with an
40	40	8increase of one-half of the difference between current rates and the newly established rates. The 2 of 2
41	41	9remaining half of the increase will follow at the end of the next twelfth month. This second
42	42	10increase will include the rate of inflation for the previous twelve-month period.
43	43	11 At the end of the two-year correction period, the minimum reimbursement rates to
44	44	12claimants will be adjusted yearly based upon the CPI for All Urban Consumers (CPI-U) Not
45	45	13Seasonally Adjusted, Northeast Region as published by the US Bureau of Labor and Statistics.
46	46	14 Under no circumstances shall the reimbursement rate to the claimant be less than the
47	47	15aforementioned calculated amount. A negotiation above the minimum reimbursement rates set,
48	48	16for the benefit of the consumer, will be determined based on a set of criteria. The criteria for the
49	49	17negotiations shall be predicated upon, but not limited to the type of vehicle (standard, high-end,
50	50	18heavy-duty, commercial, and/or body composition materials) labor type (body, refinish,
51	51	19structural, frame, aluminum, mechanical or other), expertise, level of training, certifications,
52	52	20equipment and geographic area of the chosen registered repair shop. No insurer shall refuse to
53	53	21negotiate on the basis of their ability to obtain a price that they can secure from another licensed
54	54	22repair facility conveniently located to the claimant.
55	55	23 Further, insurers are prohibited, other than by the means outlined in current laws and
56	56	24regulations, from suggesting, insisting, or overtly steering a claimant to use any specific
57	57	25registered repair facility to repair their damaged vehicle.
58	58	26 The promulgation of this law setting a minimum reimbursement rate to the claimant shall
59	59	27not invalidate any of the requirements as set forth in the governing statutes including but not
60	60	28limited to the: MGL Chapter 26 Section 8G, Code of Massachusetts Regulations; 211 CMR 123,
61	61	29211 CMR 133 or 212 CMR 2.0.