# KY Insurance Advisory Opinion 1999-02: Use Of Fee Schedules For Payment Of Medical Expenses In Basic And Added Reparation Benefits Coverage > Kentucky · Agency guidance · In force URL: https://www.frixlaw.com/law-library/statutes/KY_INS_AO_1999-02 ## Section - **Citation:** KY Insurance Advisory Opinion 1999-02 - **Heading:** Use Of Fee Schedules For Payment Of Medical Expenses In Basic And Added Reparation Benefits Coverage - **Jurisdiction:** Kentucky - **Kind:** Agency guidance - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Kentucky Department of Insurance Bulletins and Advisory Opinions / Use Of Fee Schedules For Payment Of Medical Expenses In Basic And Added Reparation Benefits Coverage ## Text The following Advisory Opinion is to advise the reader of the current position of the Kentucky Department of Insurance ("the Department") on the specified issue. The Advisory Opinion is not legally binding on the Department or the reader. Kentucky Department of Insurance Advisory Opinion 99-2 In Re: Use of Fee Schedules for Payment of Medical Expenses in Basic and Added Reparation Benefits Coverage It is the Department's understanding that some carriers providing coverage under the Motor Vehicle Reparations Act, KRS 304.39 ["reparation obligors"], are using various computer programs to identify usual and customary medical charges for certain services, in essence creating a fee schedule. It is the Department's opinion that these fee schedules are not directly prohibited under KRS 304.39. Recently-enacted KRS 304.39-245 allows a reparation obligor to request or negotiate a reduction or modification of charges from a provider. It prohibits a provider who agrees to such a reduction or modification from billing the secured person for the amount of such reduction or modification. However, the provisions of KRS 304.39-020(5)(a) remain unchanged. That statute creates the presumption that any medical bill submitted is reasonable. The burden remains on the reparation obligor to establish both that the original fee is not reasonable, and the amount the reparation obligor proposes in payment is reasonable. The Department strongly believes secured persons must not be unjustly affected by any dispute between reparation obligors and providers. The reparation obligor must protect the secured person during any period of dispute to avoid any detrimental effects the insured/claimant may experience, which may include collection efforts by the provider, adverse credit references or denial of care. If during the period of dispute the insured/claimant might experience any such detrimental effects, it may become necessary for the reparation obligor to pay the full amount pending resolution of the dispute ny period of dispute to avoid any detrimental effects the insured/claimant may experience, which may include collection efforts by the provider, adverse credit references or denial of care. If during the period of dispute the insured/claimant might experience any such detrimental effects, it may become necessary for the reparation obligor to pay the full amount pending resolution of the dispute. Questions regarding this Advisory Opinion may be directed to Lawrence W. Cook, Counsel for the Department, at (502)-564-6032. __________________________ George Nichols III Commissioner __________________________ Date ## Nearby sections - [KY Insurance Advisory Opinion 1998-01 The Issuance And Renewal Of Health Benefit Plans Under 98 RS HB 315/En](https://www.frixlaw.com/law-library/statutes/KY_INS_AO_1998-01.md) - [KY Insurance Advisory Opinion 1998-02 Hospice Care Coverage Under Health Benefit Plans](https://www.frixlaw.com/law-library/statutes/KY_INS_AO_1998-02.md) - [KY Insurance Advisory Opinion 1998-03 Health Care Discount Programs](https://www.frixlaw.com/law-library/statutes/KY_INS_AO_1998-03.md) - [KY Insurance Advisory Opinion 1998-04 Participation Requirements For Groups](https://www.frixlaw.com/law-library/statutes/KY_INS_AO_1998-04.md) - [KY Insurance Advisory Opinion 1998-05 Damages For Motor Vehicle Loss Of Use And Settlement Of Claims For Motor Vehicles](https://www.frixlaw.com/law-library/statutes/KY_INS_AO_1998-05.md) - [KY Insurance Advisory Opinion 1999-01 Conversion Plans As Health Benefits Plans](https://www.frixlaw.com/law-library/statutes/KY_INS_AO_1999-01.md) - [KY Insurance Advisory Opinion 1999-02 Use Of Fee Schedules For Payment Of Medical Expenses In Basic And Added Reparation Benefits Coverage](https://www.frixlaw.com/law-library/statutes/KY_INS_AO_1999-02.md) - [KY Insurance Advisory Opinion 1999-03 Experience-Information Reports Of Insurers](https://www.frixlaw.com/law-library/statutes/KY_INS_AO_1999-03.md) - [KY Insurance Advisory Opinion 1999-05 Group Claim Experience](https://www.frixlaw.com/law-library/statutes/KY_INS_AO_1999-05.md) - [KY Insurance Advisory Opinion 1999-06 Claims Practice](https://www.frixlaw.com/law-library/statutes/KY_INS_AO_1999-06.md) - [KY Insurance Advisory Opinion 1999-07 Dual Rates For Medicare Supplement Policies](https://www.frixlaw.com/law-library/statutes/KY_INS_AO_1999-07.md) - [KY Insurance Advisory Opinion 1999-08 Any Willing Provider Law](https://www.frixlaw.com/law-library/statutes/KY_INS_AO_1999-08.md) - [KY Insurance Advisory Opinion 1999-12 Bulletin 98-2 Personal Lines Property Insurance For Earthquake Damages](https://www.frixlaw.com/law-library/statutes/KY_INS_AO_1999-12.md) - [KY Insurance Advisory Opinion 1999-13 Waiver Of Our Right To Recover From Others Endorsements (Ncci Form Wc 00 01 13)](https://www.frixlaw.com/law-library/statutes/KY_INS_AO_1999-13.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/KY_INS_AO_1999-02. Check the current official text before relying on it. Not legal advice.