Here’s the problem – PIP (Personal Injury Protection) carriers unilaterally reduce provider bills. Kentucky law allows the reparation obligor’s request for negotiation of reduction or modification of charges. Kentucky law also has a recurring problem when PIP carriers reduce a doctor’s statement of services without having an agreement.
Here’s the solution – The Kentucky Department of Insurance will only accept such modifications or reductions if the PIP carriers will be able to meet the conditions that was laid out in its bulletin. In 2013, the Department released a bulletin addressing the issue on the act of PIP carriers that independently reduced a medical provider or a doctor’s bills. In the bulletin, the Department will only accept a modified or reduced charge if the following instances are met:
- There has been a written agreement between the insurance company and a provider. The agreement shall state that it applies to Kentucky No-Fault Benefits.
- There has been an agreement between an insurance company’s third-party administrator and a provider. The insurance company shall provide upon the Department’s request the third-party administrator and provider’s a written agreement allowing the reduction or modification. Likewise, the agreement shall state that it applies to Kentucky No-Fault Benefits.
As a Kentucky Personal Injury Attorney, I admire the Department for ensuring that those who need help the most will be protected. Remember that if you were involved in an automobile accident, you are entitled to PIP benefits. If you or your loved ones were involved in an accident, it is important to seek legal assistance from a Kentucky accident attorney, so start applying for the benefits you deserve.