Colo. Lawmakers Consider Car Insurance Changes

Nearly three years after Colorado abandoned no-fault auto insurance, hospitals complain they’re not getting paid to treat accident victims and consumers have to do some checking to make sure they’ve got enough coverage.

That’s led to some proposals at the state Capitol to modify the new tort system, which requires the driver who caused an accident to pay for the damage.

Ideas range from requiring insurers to give a more detailed explanation of the coverage options (House Bill 1030) to requiring that motorists buy coverage for emergency medical care (Senate Bill 19).

Another proposal would require companies to offer policies with medical coverage but allow consumers to opt out (House Bill 1036).

Medical coverage isn’t currently required, and drivers with separate health insurance coverage often depend on that when they’re hurt in accidents. However, since the switch, hospitals have complained that health insurers have been slow to pay, costing them $80 million a year.

On Monday, state lawmakers will consider requiring them to pay some claims within 45 days, the same deadline that applies to other health insurance claims. Currently claims from auto accidents and work-related injuries covered by worker’s compensation law are exempt from that prompt pay law.

The change would only apply to “clean claims” — cases in which coverage isn’t in dispute.

Sponsor Sen. Jennifer Veiga, D-Denver, said she thinks most people have benefited from the tort system because they can tailor coverage to their needs. She opposes requiring medical coverage with auto policies because she said not everyone needs it.

“To me that’s a step going back to the no-fault system,” she said.

Mike Benschneider, a lobbyist for Farmers Insurance, said drivers who are covered by Medicaid or private health insurance or who are in the military may not need that coverage.

Rep. Morgan Carroll, D-Aurora, said drivers aren’t really getting a bargain under the tort system because even though premiums may have gone down, their coverage may have, also. She said medical coverage would pay for emergency care immediately after an accident, and the injured person’s insurer could pursue reimbursement later from the person responsible for the collision.

Carroll thinks that’s better than sticking consumers with medical bills and leaving them to try to recover those costs on their own.

“The average consumer out there has no prayer how to figure this all out,” Carroll said.

She said even people with health insurance may need extra coverage if they have a high deductible or limits on where they can be treated.