Last year's report by the RAND Institute for Civil Justice1 presented some startling numbers on the estimated costs of "excess" medical claims for automobile injury claims.Just for the year 1993, the report states:
- 19%-31% of medical costs for "hard injury claims" are in excess
- 59% of costs for "soft injury claims" are in excess
- overall 35%-42% of all medical costs are in excess
By their 1993 estimates, this resulted in $4 billion in excess consumption of health care resources. This, in turn, cost insurers an additional $9-13 billion in 1993. Consumers, of course, ultimately bear these additional costs:
"Put another way, the costs generated by excess medical claiming add $100-130 to every auto insurance policy."Reference
1. The Costs of Excess Medical Claims for Automobile Personal Injuries. The Institute for Civil Justice, March 1995.