I heard these reforms are going to lower medical care costs. How does that work?

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There is an important provision in the new law that seeks to control medical care costs. That will become effective in July 2021. There will be fee schedules put into place, with the government telling providers what they can charge.

Previously, doctors, hospitals, and other care providers could charge whatever the local customary and reasonable amount was. So that would vary depending on where you are in the state.

Starting in July 2021, these providers will be limited to a fee schedule, which in most instances will be basically 190% of what Medicare pays. (Medicare is a low payer across all of the different charging systems that we have.)

This means there will likely be many good healthcare providers that will no longer see accident victims. We hope that doesn’t become the case, but that could be a result.

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