The Colorado Court of Appeal unanimously rejected State Farm Mutual Automobile Insurance's "exclusive computer database" to calculate medical costs.
State Farm used Sloans Lake Auto Injury Management, a medical database that compares physician charges against same or like services in a geographic region. The court conculded that the technique was arbitrary and unreeasonable.
The case is Pauline Reyher and Dr. Wallace Brucker v. State Farm Mutual Automobile Insurance Co. Insurance Journal, Insurance Journal 09/25/2007 Read Article: Insurance Journal
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I recently increased my award in a total loss claim on a vehicle caused by weather from $5000 to $6800 by persistently providing my own calculations of the true market value of the vehicle after conducting my own analysis. The agent finally relented after I persisted that I didn't trust the numbers, and he couldn't prove to me that they were objective, or that they in any way reflected reality. I don't know how one would do this for medical costs, but my own experience with this type of BS suggests that there's definitely something amiss which demands a regulatory correction.
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