Bray’s Report

I was very interested to read this year-old  bill finally had a hearing in Massachusetts. If you read and analyze the bill, you will notice it talks of establishing 3 Tiers of Auto body shops  and based on the rating, insurers would be required to pay the shop at each level what is fair and reasonable for all labor hours. Shops that are B rated cannot be paid less than 90% of the the indexed labor rate in force at the time of the completion of the job.  What????

Is this the state regulating minimum prices? What is the state’s definition of “fair and reasonable”?  In the free market, repair shops like any entity need to compete and operate in a manner that allows for the fair market price to reach equilibrium on it’s own. Not with government price fixing. Oh yeah, I forget we are in the era of big government.

Here’s the link to the bill.