Medical billing inflation poses a significant challenge for auto carriers, particularly within casualty claims. This growing issue, driven by a combination of regulatory gaps and the increasing frequency of high-cost procedures, demands effective strategies and innovative solutions to manage costs while ensuring fair compensation.
In our latest PC360 webinar – featuring CEO & Co-Founder of TempusDirect Greg Gaughan, CCC’s Director of Industry Analytics Erik Bahnsen, and CCC Associate Director of Casualty Solutions & Consulting Erin Campbell – our panelists discussed how medical billing inflation is impacting carriers and what they can do about it.
Click here to watch the replay.
Among the topics covered:
Medical Billing Inflation Trends
- Third-party auto medical billing inflation has significantly outpaced general health care inflation due to lack of regulation, an increasing number of outpatient surgeries, radiology, and evaluation and management (E&M) procedures per injured party, and the growing cost of those procedures. This is compounded by our country's aging population with pre-existing co-morbidities.
- The growing number of uninsured or underinsured drivers can complicate claims scenarios in which accident victims must rely on their own insurance or face inadequate compensation.
- Download our latest report on auto medical billing inflation and see how it's presenting in 5 major U.S. cities.
Insights for Adjusters
- Adjusters need to negotiate the reasonableness of medical specials with providers and attorneys but shouldn't rush.
- Adjusters want to be accurate and pay bills correctly, but often lack the necessary training, support, and experience required to negotiate bills effectively, mostly due to increasing turnover and remote/hybrid work, which can create inconsistencies.
- Practice makes perfect – negotiating medical bills is a learned skill and carriers that train adjusters in a virtual learning environment will need to prioritize repetition.
Technology Tips
- Technology that can capture key accident details earlier in the casualty claim process and automate medical bill review can equip adjusters with crucial information for effective negotiation.
- Technical integrations and networks are constantly evolving, making it faster and easier for adjusters to review medical bills.
