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Transcript of Minnesota No-Fault Insurance Claimsmn.gov/commerce-stat/pdfs/nofault-irc-cost-study-2008.pdf ·...
![Page 1: Minnesota No-Fault Insurance Claimsmn.gov/commerce-stat/pdfs/nofault-irc-cost-study-2008.pdf · Minnesota No-Fault Insurance Claims David Corum, CPCU Vice President . September 12,](https://reader035.fdocuments.net/reader035/viewer/2022062600/5aa0f7137f8b9a8e178ebc15/html5/thumbnails/1.jpg)
Minnesota No-Fault Insurance Claims David Corum, CPCU Vice President
September 12, 2008
![Page 2: Minnesota No-Fault Insurance Claimsmn.gov/commerce-stat/pdfs/nofault-irc-cost-study-2008.pdf · Minnesota No-Fault Insurance Claims David Corum, CPCU Vice President . September 12,](https://reader035.fdocuments.net/reader035/viewer/2022062600/5aa0f7137f8b9a8e178ebc15/html5/thumbnails/2.jpg)
Minnesota Premium Costs in Context Average liability premium costs are below the national average, but significantly higher than neighboring states.
Average liability premium in 2005
$496 $460
$290 $259 $298 $339
U.S. Minnesota Iowa North South Wisconsin Dakota Dakota
Source: NAIC
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Overview
Seriousness of injuries General cost trends Components of cost and cost drivers Utilization of medical services Unit costs
Attorney involvement Tort threshold Data and methodology
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Distribution of Auto Injury Claims by Type of Coverage Minnesota
78%
2% 3% 2%
28%
1% 6% 8%
15%
58%
BI PIP MP UM UIM
Percentage of Claims Percentage of Payments
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Minnesota PIP Claim Frequency & Severity
Claims per 100 Average payment 3 $8,000 insured vehicles per claim
2.5 +28%
-31%
$6,000 2
1.5 $4,000
1
$2,000 0.5
0 $0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
PIP frequency PIP severity
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Minnesota No-Fault Insurance Claims
Seriousness of Injuries
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Seriousness of Injury Continues to Decline
Percentage of Minnesota PIP Claimants…
74% 73%71%68% 65% 64%
With No Visible Injury With No Disability
1997 2002 2007
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Seriousness of Injury Continues to Decline Percentage of Minnesota PIP Claimants…
60%57% 55%
43%41%38%
With No Days of Restricted Who Lost No Time From Work Activity
1997 2002 2007
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PIP Claim Costs are Increasing Average total claimed PIP losses and payments in Minnesota
$7,832 $6,971
$6,223 $5,321 $5,326
$4,783
1997 2002 2007 Total claimed losses Total PIP payment
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Medical Costs Dominate Claimed Losses Distribution Minnesota PIP Claimed Losses by Type of Loss
3% 2% 3%
82% 87% 87%
15% 11% 10%
1997 2002 2007
Medical Wage loss Other
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PIP Claim Cost Growth Consistent With Medical Inflation
Annualized Percentage Change in Average Minnesota Claim Cost Measures, 1997-2007
4.1% 4.1%
1.7%
3.6% 2.6%
Medical losses CPI-Medical Wage losses Total PIP CPI-All items claimed losses
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Distribution of PIP Medical Losses by Type of Service
Minnesota Diagnostic
services Hospital 12% services
29%
Pharmacy services
7% Treatment providers
52%
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Minnesota No-fault Insurance Claims
Hospital Utilization and Costs
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Hospital Use by PIP Claimants Minnesota
49% 45% Did not go to hospital 43%41%
Emergency room only
Stayed one or morenights Outpatient only 10%
5%5% 3%
2002 2007
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Average Total Hospital Charges by Type of Use Minnesota
$706Emergency } +123% room only $1,575
Stayed one or $19,615 }+ 37% more nights $26,807
Outpatient $1,592 2002only $1,504 2007
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Increasing Use of Pain Clinics Percentage of Minnesota PIP Claimants Receiving Treatment in Multidisciplinary Facilities
21%
6%
2002 2007
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Minnesota No-Fault Insurance Claims
Diagnostic Services and Costs
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Utilization of Diagnostic Procedures Percentage of Minnesota PIP Claimants With Each Type of Procedure
60%58% 56%
+33%
16%13% 12% 12% 12%9%
X-ray MRI CT
1997 2002 2007
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Average Charge per Diagnostic Procedure Minnesota
$589 CT $1,117
$1,193
$1,191 MRI $1,432 } +27% $1,812
$144 X-ray $239 1997
$245 2002 2007
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Diagnostic Costs Distribution of Total Diagnostic Charges by Type of Procedure, Minnesota PIP Claims in 2007
7% 22%
26%
45%
Other
CT
MRI
X-ray
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Minnesota No-Fault Insurance Claims
Treatment Providers and Costs
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Types of Treatment Providers Used Percentage of Minnesota PIP Claimants Treated by Each Type of Provider
49%47%45%43% 43% 42% 42%40% 40%
19%18%16% 16% 16% 11%
ER physician Chiropractor General Physical Diagnostic practitioner therapist radiologist
1997 2002 2007
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Utilization of Chiropractic Treatment Percentage of PIP Claimants in No-Fault States Receiving Chiropractic Treatment
Washington 47% Florida 43%
Minnesota 42% New Jersey 36%
Texas 34% New York 33%
Massachusetts 31% Oregon 30%
Pennsylvania 26% Utah 25%
Kansas Maryland
23% 23% States with at least 100 PIP
claims in IRC sample.
Kentucky 22% South Carolina 21%
Delaware 19% Hawaii 17%
Michigan 15%
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Utilization of Chiropractic Treatment Percentage of Minnesota PIP Claimants Receiving Chiropractic Treatment by Most Serious Injury
61%
15%
Sprains & Strains All Other Injuries
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Utilization of Treating Providers Average Number of Visits per Minnesota PIP Claimant Receiving Treatment
35 33 32
15 13 12
6 44 33 2
General Chiropractor Orthopedist Physical Practitioner Therapist
1997 2002 2007
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Treatment Costs Average Charge per Visit by Type of Provider, Minnesota PIP Claims
$152General $194Practitioner $201
$144 Chiropractor $122 } 30%
$158
$298 Orthopedist $595
$552
$109Physical $158Therapist $219
1997 2002 2007
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Treatment Costs Average Total Charges by Provider Type, Minnesota PIP Claims
$572General $771practitioner $529
$3,125 Chiropractor $3,797 } 20% $4,550
$1,921 Orthopedist $1,830
$2,558
$1,655 Physical $1,785 Therapist $2,341
1997 2002 2007
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Treatment Costs Distribution of Total Provider Charges by Type of Provider, Minnesota PIP Claims in 2007
12%
11%
8% 6% 5%
58%
Chiropractor Other Physical Therapist General Practitioner ER Physician Orthopedist
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Minnesota No-Fault Insurance Claims
Attorney Involvement
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Percentage of Claimants Hiring Attorneys PIP Claims, Minnesota and Countrywide
31%30%28% 28% 24%23%
1997 2002 2007
Minnesota Countrywide
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Average Claimed Losses by Attorney Involvement Minnesota PIP Claims
$16,560
$13,686
$5,411 $4,806
All PIP claimants Sprain/strain most serious injury
Attorney No attorney
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Medical Treatment and Attorney Involvement Attorney Represented Minnesota PIP Claimants Use More Medical Resources
82%
49%
13%
31%
52%
31%
5% 12%
Gen. pract. Chiropractor Orthopedist Physical therapist Avg. # visits: 4 2 44 22 3 2 13 11
Attorney No attorney
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Time to Final Payment by Attorney Involvement Days From Injury Report to Final Payment by Attorney Involvement, Minnesota PIP Claimants
60%
33% 23% 23%
17% 15% 12%10%5%2%
0-30 days 31-90 days 91-180 days 181-365 Over 1 year days
No attorney Attorney
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Minnesota No-Fault Insurance Claims
Tort Threshold Effectiveness
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Effectiveness of Tort Threshold
Did PIP Claimant Qualify for BI Tort Recovery?
Yes, 34%
No, 66%
Would Claimant Qualify If Tort Would Claimant Qualify Under Threshold Did Not Exist? A Strong Verbal Threshold?
No, 69%
Yes, 31%
18% + 23% = 41%
Unknown, 17%
No, 56%
Yes, 27%
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Minnesota No-Fault Insurance Claims David Corum, CPCU Vice President
September 12, 2008