Closing Out 2021 with Momentum

EVANGELOS “LUCKY” PAPAGEORG

The combined efforts of you, our membership, the volunteers who serve on our Board of Directors and the hard-working staff of AASP/MA have made tremendous contributions in 2021 and have built a great deal of momentum going into 2022. We have a long road ahead of us as an industry, but with our ongoing and sustained efforts, we can continue to make headway and increase our momentum.

Over the course of the past year, we have kept you informed of the many advances we have made regarding benefits created, along with milestones we have achieved. The following is a recap of many of our successes and advances made. AASP/MA has been able to add value to your membership, thereby rewarding you for your support and efforts on behalf of consumers who rely on our industry members for the repair of their damaged vehicles. These accomplishments are listed in no particular order of importance, but the combined success of our efforts speaks volumes.

For the first time in many years, we have seen great success in our legislative endeavors. This success is because of many factors, not the least of which is you, our membership. When the call to action was issued at the beginning of this current legislative session, you made hundreds of calls to legislators across the state. In a matter of just a few days at the end of February, we gained the signature support of 90 senators and representatives statewide on our two legislative bills. We have also received verbal support from dozens more in the house and senate. The two bills are HB 1111, “An Act to establish minimum reimbursement rate to insurance claimants” and HB 327, “An Act relative to the licensure of appraisers.” Both of these bills are critical to the consumers of Massachusetts, and thereby you - the repairer - will ultimately benefit when you are able to negotiate with insurance appraisers on a level field and receive compensation for required procedures at a rate that reflects the technical expertise necessary to repair today’s vehicles. We are happy to report that HB 327 was released from committee on November 1 with a “should pass” vote by the Joint Committee of Consumer Protection and Professional Licensure (CPPL). Please take a moment to call Chairman Tackey Chan, the lead sponsor of the bill to thank him for his efforts at (617) 722-2014.

Our legislative successes were accomplished because we were able to engage a full lime lobbyist, thanks to the additional support from the members of the Board of Directors and some of our membership who committed to additional monthly financial support. We thank each and every one of you for your additional support and urge others to contact our office to contribute to support the Lobbying and Legal Fund. This is not a Political Action Committee (PAC); it was created solely for the purpose of sustaining a professional lobbying effort and creating a legal war chest for the future, for OUR future, for YOUR FUTURE. Our legislative agent (lobbyist), Guy Glodis, has been instrumental in advancing our legislative agenda. We have had meetings with key legislators across the state as well as with Lt. Governor Polito and Insurance Commissioner Anderson, setting the foundation for our efforts.

In support of our efforts to increase the minimum reimbursement to insurance claimants, we have continued our work with National AutoBody Research (NABR). Richard and Sam Valenzuela have been working diligently to compile the information submitted by repairers across the state in the form of a “POSTED” Labor Rate survey, and the accumulation of nearly 11,000 documents, of which over 3,200 are from Massachusetts, show the rates and procedures insurers have paid. These documents also demonstrate the rates, the true prevailing rates, customers have paid for work performed, not the contractual rates insurers have artificially set through their referral and program shops across the state. I am happy to report that I continue to get calls from shops who are removing themselves from these industry-restricting contracts. In turn, they are improving their ability to better negotiate on behalf of their customers. NABR will be assisting our industry as we prepare to give and hear testimony during the Labor Rate Study Commission (LRSC) set for the future.

AASP/MA has appointed three panelists to the LRSC. We have been working closely with the Massachusetts State Auto Dealers Association (MSADA) and the vocational school representative on the LRSC to accumulate and best present data. This data will document that there must be action taken regarding relief on the Labor Rate reimbursement paid on claims here in Massachusetts. We are all acutely aware of the fact that as an industry, we are far behind what is a fair and equitable rate of reimbursement for the critical and highly technical work we perform on today’s vehicles. Massachusetts is the LOWEST in the country in Labor Rates, far below the next closest state, and we are located in one of the top five most expensive states in which to run a business. Massachusetts is more expensive than any of the surrounding New England states which are all paid significantly more for doing the same work on the same vehicles. It is high time that “equal pay for equal work” becomes a reality. When the hearing dates are set for the LRSC testimony, you MUST show your support by attending. Additionally, giving testimony addressing the issues you are facing, resulting from a suppressed Labor Rate, would be very important and impactful.

Through the efforts of the collision industry and consumers, a recent Supreme Judicial Court (SJC) decision regarding Inherent Diminished Value (IDV) was decided, and I urge you to become familiar with the significance of this decision. Please read Jim Castleman’s legal perspective on the SJC’s decision on page 34 and learn how it is another tool you and your customers can use to get proper reimbursement for the repair of vehicles and what it can mean to insurers if they fail to pay for what is required. This is no small change in how claims and claims settlements will be handled; this is all due to the sustained efforts of consumers and their legal teams who did not take “NO” as an answer. They endeavored and ultimately succeeded - a lesson for all of us!

We have been adding value to your membership through the benefits added last year. We have entered into partnerships with several companies to bring you discounted rates on dental and health care insurance, as well as ways to save you significant money on your credit card processing fees. Your participation not only saves you money, but it also financially supports our efforts. Please see the President’s message in this issue for more details. Additionally, we are helping you cover the ever-increasing costs associated with training your technicians. Grant writer Sandra Kearns of Human Power Solutions, a VAP sponsor, has