Q: If Government Accepts FSCO's Recommendation and Slashes A

TORONTO, May 22 /CNW/ - The Financial Services Commission of Ontario (FSCO) is recommending that Finance Minister Dwight Duncan slash medical and rehabilitation accident benefits from $100,000 to $25,000, yet it apparently does not have the data to assess how much in additional profits this will mean for insurance companies.

The Alliance of Community Medical and Rehabilitation Providers sent a formal request to FSCO, asking for financial information relating to the auto insurance sector in Ontario including the estimated financial benefit that would accrue to the industry if the recommendation is implemented by government.

"We were shocked when FSCO told us they didn't have that information" says Patricia Howell, an Alliance member and an occupational therapist who provides rehabilitation services to auto accident victims. "FSCO is the insurance regulator in Ontario. How can it make recommendations to the Minister, recommendations based on the industry's contention that it needs financial relief, without knowing what the impact of its proposal will be?"

The Alliance's own, admittedly crude, calculations suggest that the proposed reduction in basic accident benefits could result in about $700 million in cost savings for the insurance industry in Ontario, yet there is nothing in FSCO's recommendations that would mandate a corresponding reduction in premiums. "We'll pay the same or more for auto insurance, and we'll get less in benefits if we're hurt in an accident," notes Laurie Davis, an Alliance spokesperson.

It should also be noted that the estimated savings for the insurance industry will result in a corresponding increase in costs for the health system as accident victims, after exhausting their $25,000 in private insurance benefits under the proposed new regime, will have to turn to the publicly-funded system. "This amounts to a transfer of costs from insurance companies to the public health system," says Howell.

The Alliance is urging the Finance Minister to protect the consumers of this province by rejecting the FSCO recommendations and maintaining the current level of basic accident benefits. "The government should not be pushing ahead without having the information it needs to make an informed decision," states Mike Barneveld, another Alliance member.

The Alliance urges consumers to contact their MPP and email Finance Minister Dwight Duncan directly at dwight.duncan(at)ontario.ca. As well, consumers can sign an online petition at www.feelinglucky.ca.

The Alliance of Community Medical & Rehabilitation Providers is a coalition of 43 organizations in Ontario providing direct clinical services to victims of motor vehicle accidents and employing physiotherapists, occupational therapists, speech language pathologists, chiropractors, social workers, psychologists, case managers and family physicians.

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