Colorado medical payments coverage bill killed

Legislation forcing Colorado drivers to purchase additional emergency medical insurance coverage as part of their auto insurance policies was defeated in the state’s Senate Appropriations Committee by a vote of 6-3.

Senate Bill 19 would have required drivers to purchase $40,000 worth of coverage to pay for accident-related emergency care, even if they already have coverage under their current auto insurance or health care plans, according to the Property Casualty Insurers Association of America. Consumers would have seen their insurance rates skyrocket by as much as several hundred dollars a year, the association said.

With the defeat of the bill, Colorado consumers will continue to have a choice as to the type of auto insurance they want, need and can afford, said Kelly Campbell, PCI western regional manager. “This type of legislation, which leaves consumers with no choices of coverage and higher rates, would have sent Colorado back down the slippery slope of no-fault auto insurance.”

An alternative proposal by Sen. Bob Hagedorn, D-Aurora, is expected to be introduced, PCI said. Sen. Hagedorn’s bill would create a state trauma fund from emission fees on motor vehicle registrations. The fund would pay for trauma services and create a funding mechanism for cash-strapped entities, such as rural ambulance services. Those small services became dependent on no-fault auto insurance’s benefits to subsidize their operation, PCI said. The challenge faced by first responders is a national, multi-faceted problem. The proposal would help alleviate some of the pressure without putting it on auto insurance consumers, the association said.

Topics Auto Colorado