Bill
H 1260
Overview: H 1260 - An Act establishing the fair calculation of labor rates paid by insurance companies to auto repairers in the CommonwealthStatus: Hearing rescheduled to 10/22/202
Overview: H 1260 - An Act establishing the fair calculation of labor rates paid by insurance companies to auto repairers in the Commonwealth
Status: Hearing rescheduled to 10/22/2025 from 10:30 AM-11:40 AM in B-1 and Virtual Hearing updated to New End Time
Introduced: February 27, 2025
Purpose and Intent: This bill aims to establish a fair and transparent process for calculating the labor rates that insurance companies pay to auto repair shops in Massachusetts. The goal is to ensure that repair shops are adequately compensated for their work and that consumers are not overcharged.
Key Provisions:
- Requires the Division of Insurance to develop and implement a standardized formula for calculating labor rates paid to auto repair shops
- Mandates that the formula consider factors such as the shop's geographic location, type of work performed, and prevailing market rates
- Prohibits insurance companies from paying labor rates below the established formula
- Provides a dispute resolution process for repair shops to challenge labor rate determinations
Affected Parties and Impacts:
- Auto repair shops in Massachusetts, who will benefit from more equitable labor rate payments
- Consumers, who may see reduced out-of-pocket costs for auto repairs if insurance companies are required to pay higher labor rates
- Insurance companies, who will need to adjust their pricing and claims processing to comply with the new labor rate formula
Procedural and Timeline Considerations:
- The bill is currently in the hearing stage, with a rescheduled hearing set for October 22, 2025
- If passed, the Division of Insurance will have 6 months to develop and implement the new labor rate formula
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
