Navigation Links
IRC Reports Claimed Medical Expenses for Auto Injury Claimants Far Outpace Inflation

MALVERN, Pa., Feb. 13 /PRNewswire-USNewswire/ -- A new study by the Insurance Research Council (IRC) has found that medical expenses reported by auto injury claimants continue to rise faster than the rate of inflation. Average claimed economic losses (which include expenses for medical care, lost wages and other out-of-pocket expenditures) for bodily injury (BI) claimants grew 9 percent annualized, from $5,520 in 2002 to $8,522 in 2007. Among personal injury protection (PIP) claimants, claimed losses increased 8 percent annualized, from $6,711 in 2002 to $9,662 in 2007. In comparison, the annualized rate of overall inflation as measured by the Consumer Price Index (CPI) was only 3 percent over the same period; the CPI inflation rate for medical care was 4 percent.

The driving force behind these gains is growth in medical care expenses, which have continued to escalate despite the fact that injuries from auto accidents are becoming less serious on average. The study cites two factors as likely explanations for the faster growth in medical care expenses for auto injury claimants than that of medical care prices generally: more frequent use of more expensive treatment alternatives and increased unit cost for claimed treatment.

"Medical costs for auto injury claimants have clearly grown faster than medical care inflation in general, suggesting that medical providers may be reacting to cost pressures in other areas by increasing their charges to auto injury insurers," said Elizabeth Sprinkel, senior vice president of the IRC. "This type of cost-shifting has important implications for the auto injury industry and for overall healthcare policy."

"The trends shown in this report should be a wake-up call to the auto injury insurance industry, which has benefited in recent years from declines in the frequency of auto injury claims," she continued. "The continued climb of medical expenses could threaten the recent benign rate environment."

The study, Auto Injury Insurance Claims: Countrywide Patterns in Treatment, Cost and Compensation, 2008 Edition, collected data on more than 42,000 auto injury claims closed with payment under the five principal private passenger coverages. Twenty-two insurers, representing 58 percent of the private passenger auto insurance market in the United States in 2006, participated in the study. This study is the sixth of its kind conducted by the IRC. The report includes findings on type and seriousness of injury, medical treatment, claimed losses and total payments, and attorney involvement.

For more detailed information on the study's methodology and findings, contact Elizabeth Sprinkel by phone at (610) 644-2212, ext. 7568; by fax at (610) 640-5388; or by e-mail at Or visit IRC's Web site at Copies of the study are available at $250 each in the U.S. ($265 elsewhere) postpaid from the IRC, 718 Providence Road, Malvern, Pa. 19355-0715. Phone: (610) 644-2212, ext. 7569; Fax: (610) 640-5388.

NOTE TO EDITORS: The Insurance Research Council is a division of the American Institute for CPCU and the Insurance Institute of America. The Institutes are independent, nonprofit organizations dedicated to providing educational programs, professional certification, and research for the property and casualty insurance business.

The IRC provides timely and reliable research to all parties involved in public policy issues affecting insurance companies and their customers. The IRC does not lobby or advocate legislative positions. It is supported by leading property-casualty organizations.

SOURCE Insurance Research Council
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. New Study Reports High Injury Rates for Hotel Workers, Even Higher Rates for Women and Nonwhites
2. Haemacure Reports Third Quarter 2007 Results
3. First-Ever List of the 5,000 Fastest-Growing Businesses Reports Total Revenue of $194.5 Billion
4. Consumer Reports Analysis: Drugs for Nerve Pain, Fibromyalgia Effective, But Not Always Best
5. MDS Reports Third Quarter 2007 Results
6. Allied Healthcare Reports Strong Fourth Quarter, Flat Net Income for Fiscal 2007 vs. 2006
7. AtriCure Reports First Human Implant of the Cosgrove-Gillinov Left Atrial Appendage Occlusion System
8. NMHC Reports Fourth Quarter and Fiscal Year 2007 Financial Results
9. Blue Cross and Blue Shield of Florida Reports Eighteenth Consecutive Year of Positive Performance
10. ReBuilder Medical Technologies, Inc. Reports International Sales Expansion
11. AdCare Health Systems, Inc. Reports Discontinuation of Definitive Merger Agreement with Family Home Health Services, Inc.
Post Your Comments:
(Date:11/30/2015)... , ... November 30, 2015 , ... ... also extremely stressful. At the VA Maryland Health Care System, the Caregiver ... veterans patients. “Caregivers have a difficult job. Seventy-four percent report that their ...
(Date:11/30/2015)... ... November 30, 2015 , ... Until now, the ... forth in the MOMS (Management of Myelomeningocele Study) trial. One of these exclusion criteria ... Prevention), a BMI of 18.5 to 24.9 is considered normal, 25 - 29.9 is ...
(Date:11/30/2015)... ... November 30, 2015 , ... During the National Family ... and held two webinars on topics of ‘Medical and Palliative Care Decisions,’ and ... . , With a loved one's diagnosis of mesothelioma, the closest ...
(Date:11/30/2015)... ... ... Stress, anxiety, illness, infection or even a need for eyeglasses can sometimes ... MD, a new pediatric neurosurgeon at Joe DiMaggio Children’s Hospital in Hollywood, Florida, said ... , “Bad headaches that don’t go away, that don’t have any other reason, ...
(Date:11/30/2015)... ... 30, 2015 , ... According to research by the National ... technicians to be certified or obtain continuing education. To increase awareness of the ... Mouth?” campaign to inform dentists that the technicians they trust could lack the ...
Breaking Medicine News(10 mins):
(Date:11/30/2015)... TOKYO , 1 décembre 2015 ... plus grande exposition et conférence d,Asie ... médicaux et sur l,industrie manufacturière, se ... du 20 au 22 avril ... - Photo - ...
(Date:11/30/2015)... Die MEDTEC Japan 2016, ... Entwicklung und Herstellung medizinischer Geräte, findet ... in Tokyo ... Foto: ... --> ...
(Date:11/30/2015)... 30, 2015 MEDTEC Japan 2016, Asia,s largest ... to be held in Tokyo from 20 th  - 22 nd April 2016. ... -->   --> --> ... the United States . With the aging population and the government back ... steadily. --> the United States . With the aging ...
Breaking Medicine Technology: