There still seems to be some confusion about the labor rates being
offered on many insurance companies' O&As. (see GlassBYTEs
item of February 4.)
"We are concerned a bit that when people see the pricing structure, they will see $40 flat and think that's it," said one insurance representative who preferred not to be identified. "It's a double-tiered structure, it's a $40 flat fee plus $30 per hour for all hours of labor."
To help avoid confusion in the industry, AGRR/glassbytes.com will refer to this $40 fee as a base fee, rather than a flat fee.
Here are examples provided by Safelite using the base and hourly fee structure:
Rebalanced Invoices with Fixed Plus Variable Labor Component
National Auto Glass Specifications (NAGS) is implementing new list prices effective February 28, 2005. In recognition of this revaluation, several insurance companies have updated their pricing structures and/or rates. To assist providers in understanding how invoices will be calculated based on new structures, following are examples of a pricing structure that includes a $40 fixed labor charge plus $30 per NAGS hour, a $15 charge per standard urethane kit and a NAGS discount or NAGS plus rate based on the benchmark prices.
The insurance company rates shown below are for illustration purposes
only. Actual discount rates will vary by insurance company and geographic
area. Please refer to each insurance company's rate communication for
actual discounts, kit prices and labor rates.
Here's how the rates for Example #1 will appear on a work order:
Here's how the rates for Example #2 will appear on a work order:
If you have any questions regarding insurance company billing requirements
or need assistance with modifying point-of-sale and invoicing systems
and processes to accommodate new pricing structures, please feel free
to contact SGC Network at firstname.lastname@example.org or watch for updates
No reproduction, in print, electronic or any form without the expressed written permission of
Key Communications Inc. 540-720-5584.