The beckoning call for chiropractors to ramp up their personal-injury segment is getting louder and louder thanks to a nationwide trend in new legislation. Here’s what you need to know.
States across the country are increasing the minimum auto insurance coverage requirements. In California, for instance, the requirements are set to more than double by 2025:
| Minimum auto insurance coverage requirements in Calif. | Now | 2025 |
| Bodily death or injury for one victim | $15,000 | $30,000 |
| Bodily death or injury for two victims | $30,000 | $60,000 |
| Property damage | $5,000 | $15,000 |
New Jersey is planning to increase its requirements twice over the next three years:
| Minimum auto insurance coverage requirements in N.J. | Now | 2023 | 2026 |
| Bodily death or injury for one victim | $15,000 | $25,000 | $35,000 |
| Bodily death or injury for two victims | $30,000 | $50,000 | $70,000 |
| Property damage | $5,000 | $25,000 | $25,000 |
In 2020, Arizona also increased its minimum insurance coverage. And more than a few people are working to eliminate the “no fault” clause in states like Florida so insurance companies must pay out more in motor-vehicle collisions.
(A listing of all minimum car insurance requirements by state can be found by scrolling midway through this article.)
The downside of these changes is that in these states, your auto insurance premiums will likely increase, particularly if you tend to carry the minimum requirements. And because drivers are returning to in-person work, average car insurance rates are already expected to increase by a whopping 8.4% this year.
This will take the current average annual cost from $1,780 to $1,930. With the exceptions of California, D.C., Hawaii, Vermont, and Wyoming, every state is expected to see a rate increase of at least 1%, with some states faring much, much worse: Illinois (17.1% increase), Arizona (14.6%), Georgia (13.8%), and New Hampshire (13.6%).1
The good news for chiropractors, though, is that insurance companies will end up paying out more in personal injury (PI) cases, which means you might just get less resistance from those pesky attorneys who challenge your medical bills.
Let’s look at the problems this solves in PI, and perhaps more importantly, what you should be doing to position yourself to take advantage.
The Problems in Personal Injury
The simple explanation is this: In many states, there just isn’t enough money to pay out in a personal-injury case. In New Jersey, for instance, the cost of a new car is much more than $5,000, which is the current minimum requirement for property damage. And in the case of injury, the current minimum of $15,000 very well might not cover the attorney’s fees (which generally run from 33-40%), plus medical bills, plus a little money for the victim’s pain and suffering.
Beyond that, the insurance companies do not want to pay a dime. They do their best to poke holes in the patient’s claims and the medical provider’s treatment.
Then add this problem to the mix: Attorneys are paid on contingency, meaning they do not get paid unless the case pays out, either via a trial, arbitration, or settlement. Very often, attorneys know that going to trial is going to be more of a hassle than it is worth, particularly when the insurance limits are low. When they look at the numbers, going to trial might not make sense from a monetary perspective, so they try to settle for less than policy limits to save themselves the time and hassle.
Sure, their 33-40% isn’t as much dollar-wise, but they saved themselves hours and hours of time, as well as perhaps expert fees and other costs, so in the end, they are faring better.
That said, the patient is also taking a monetary hit, and this puts attorneys in a pickle because they want the patient to be happy.
So, what happens? The attorney often comes after you, the chiropractor. After all, if the attorney can bully or intimidate the medical providers into reducing their bills, the client will walk away with more money.
Basically, it’s a domino effect. Everyone wants money, and the chiropractor – a healer and harmonizer by nature – ends up on the short end of the stick. Some attorneys will use less than ethical tactics, including misleading the patient and misrepresenting the law when concerning your right to be paid.
For instance, have you ever had an attorney threaten interpleader? If you know the law, interpleader will work in your favor (especially with respect to higher bills). And have you ever had an attorney claim that you must share an equal pro rata percentage like all other providers and only from one-third of the settlement pot? The truth is, in almost all 50 states, the patient still owes the balance of the medical bills, regardless of the case outcome.
You get the point: Personal injury could feel like it is more trouble than it is worth. If those are your thoughts, though, you would be wrong, big time!
Ramp Up Your PI Segment – ASAP!
PI can be your practice’s gold standard when it comes to profits from your various practice segments. In fact, you are about to read something shocking: When you understand the personal-injury arena, PI should be the best paying segment of your practice – far better than insurance and cash.
Editor’s Note: Part 2 of this article (July web exclusive) continues Michael’s discussion of PI and its importance in your chiropractic practice model.
Reference
Continuing to impress the advertising and marketing world, The Foundation for Chiropractic Progress (F4CP) has again been recognized by industry organizations for its excellence in educating consumers on the benefits of chiropractic, this time through social media, newsletters, and demonstrating thought leadership by promoting holistic well-being.
Dr. Louis Sportelli received the Lee-Homewood Chiropractic Heritage Award during the annual conference of the Association for the History of Chiropractic (AHC). During his nearly 60-year career, Dr. Sportelli has embodied the spirit of the award, given to “living individuals who have made outstanding contributions to the chiropractic profession.”
Presently there is no consensus on the best treatment for Achilles tendon rupture; and its management is still controversial. The treatment options are conservative treatment and surgical repair. With either treatment, be it conservative or surgical, Achilles tendon tears necessitate prolonged recovery and rehabilitative management.
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