No. Dakota Ins. Dept. Studying Independent Medical Exams

The North Dakota Insurance department has initiated a study of provisions under the state’s no-fault insurance laws that require independent medical examinations (IME’s) in certain contested cases.

The move follows complaints that the insurers, who may require the IME’s, have been abusing their right to do so, by reaquiring persons receiving medical treatment to consult with medical examiners hired by the companies. They are therefore seen as biased in making the examinations, and, it is alleged, they frequently terminate benefits prematurely.

The insurance industry responded to the charges by pointing out that IME’s are necessary in order to control questionable claims, which in turn enables the industry to provide no-fault benefits at a reasonable cost.

The No. Dakota legislature is currently considering amending the State’s no-fault law to set up panels of medical examiners, selected by the insurance department, who would review contested decisions on whether further medical treatment was warranted or not.

The Department’s announcement, while not making “any specific recommendations,” went on to note that “if the department were to make a recommendation, that it would be that the legislature consider an alternative dispute mechanism as an alternative to the formal legal process, especially for smaller claims.”