Progressive Medical Provider MVFRL Interest Litigation
Practice:
Medical Providers Disputes With Insurers
Phase:
Current
In 2002, Chimicles & Tikellis LLP filed a class action in the Philadelphia Commerce Court alleging that Progressive Insurance Company failed to pay providers of medical benefits (such as physicians, hospitals, and equipment suppliers) within 30 days of the date they submitted bills for medical treatment they provided to Progressive’s insureds who were injured in motor vehicle accidents, yet nonetheless failed to pay interest on those overdue bills as required by the Pennsylvania Motor Vehicle Financial Responsibility Law (“MVFRL”). The complaint survived Progressive’s preliminary objections and in December 2003, the Court certified the case as a class action on behalf of all medical providers whose bills were not paid by Progressive within 30 days where Progressive did not include the 12% interest mandated on such overdue bills by the MVFRL. In April 2009, the Curt granted motion for partial summary judgment field by the Medical Provider class and held that Progressive is liable to pay interest on all MVFRL bills it paid more than 30 days after receiving the physicians’ bill on HCFA Form 1500. Discovery is ongoing in the case. No trial date has been set.
| Attachment | Size |
|---|---|
| Class Certification Decision.PDF | 269.4 KB |
| Summary Judgment Decision .pdf | 164.99 KB |
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