Our office has been contacted several times lately by insurance carriers wanting to institute  "Flat Rate" pricing for depositions. These rates are ridiculously low, and in my opinion hurt the Court Reporting Profession. Even though we could use the additional work, I have declined accepting jobs from these Carriers. Hopefully others will do the same.

 

Jerry Proctor

Manager

Professional Reporting Services, Inc

 

 

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I have worked as an insurance defense legal assistant for years (15). The firms have set-rates for billing from the insurance companies.  One attorney whose hourly rate is $300 was $175 for his insurance client.  Paralegal billing rates are also set.  I did the billing each month.  We had to follow Billing Guidelines.  The insurance company had special employees review the statement each month. It would come back lined out what they were not paying any why they were not paying it. 

 

Insurance companies rule litigation.  I know there are now law firm that are required to use certain reporter agencies because the insurance company has set up flat rates with them - and if the law firm doesn't use that agency, the law firm doesn't get paid (so possible the reporter won't get paid).

 

Insurance companies are doing everything possible to keep costs under control.

 

Mary,

We have several clients who for years now have been instructed by Insurance Carriers to use other agencies for their cases even though in many instances our rates are less than the rates being charged by the "preferred" court reporting agency.

In case people are not familiar with this new approach by Insurance Carriers dubbed Flat Rate Billings, What they want is to be billed the same price for a deposition that is 10 pages or 120 pages. In the 20+ years I have been in the business I have not seen this take place. 

Most likely,  the "direct contact" has no knowledge that your rates may actually be cheaper than another firm's.  It all comes down to two people on the phone, and one (the insurance company) liking what he hears.

 

What you could do is find out who the insurance company is, who the direct contact is, and sent them a nice letter with your proposed rates.

Another thing:  The insurance company sends over a new matter.  The managing attorney has to review it, then make a Litigation Proposal - which outlines practically everything to be done (from discovery, depositions, and the time it will take) - with the costs for each item and the  total amount for litigation.  Then it gets sent to the Insurance Company for them to approval.  And if something goes over, or is intended to go over, it needs to be approved by the Insurance Company - or the cost get negotiated or unapproved (meaning no pay).

 

It's rough today to be an insurance defense attorney. 

I only said these things to give you all an idea of how law firms have to deal with the insurance companies, what they have to go through.

That makes absolutely no sense.  I cannot believe any agency would agree to such "flat" rates.  This is very scary.  One good thing is reporters can always just say, "No, I won't work for those rates."  If everyone refuses to accept this degrading rate, things will change real quick.

 

This may or may not be true, but they claim they already have several Agencies here in California that have accepted these flat rates. All we can do is hope that this doesn't become the "norm"

I can only imagine what quality of transcript is going to be turned in.  Think about it.  If you are making $150.00 for a 50 page transcript or a 250 page transcript, you would have to speed up your editing time just to make ends meet.   Maybe quality is not a concern.

I am hearing from more attorneys that they are getting really poor quality transcripts from some of these contracted depositions.  Maybe it will become so prevalent, that the lawyers will speak up.  I know one attorney told me he told his insurance client that he couldn't do his best work because of the transcript quality he was getting from a reporter he was required to use.  His insurance client told him he could use his own reporter.  There really should be a way to set our prices to not fall below a certain ceiling..............but there will always be reporters and digital reporters that will work for the lowest rates.

 

Hi Jerry:

 

I am glad you are doing this.  I'm not interested in taking work like that. 

 

 

Kerry,

Thank you for your post.  I am coming across a lot of the same thing.  At some point we will make more money going back to being a waitress at a coffee shop, if these larger reporting agenices continue to drop rates.
However, It is also in the hands of the individual reporters who continue to work for these contracting reporting agencies?

Good for you!

Have a great day!

Cheryl

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