Insurers are not limited in the methods they can use to calculate reimbursement rates for medical companies that provide products to automobile accident victims under the Motor Vehicle Financial Responsibility Law, the Pennsylvania Supreme Court has ruled.
In a unanimous decision in Freedom Medical Supply v. State Farm Fire and Casualty, the court held that Section 69.43(c) of the MVFRL permits reimbursements to be calculated based on a provider’s bill for services or on data collected by a carrier, but does not require either of those methods to be used. The justices heard the issue on certification from the U.S. Court of Appeals for the Third Circuit.
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