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What are "Basic Economic Loss Benefits"?

Posted by: euser
December 26, 2006
Topic: Minnesota No-Fault Law

If an injury arises out of the "maintenance or use of a motor vehicle," the injured person is entitled to a variety of what the statute calls "basic economic loss benefits." Under Minn. Stat. § 65B.44, basic economic benefits include up to $20,000 for medical expenses and a total of up to $20,000 for income loss, replacement services loss, funeral expense loss, and survivors’ losses.

Subdivision 2 describes what is covered under the term "medical expenses." The statute provides that medical expense benefits shall reimburse all reasonable expenses for necessary:

(1) medical, surgical, x-ray, optical, dental, chiropractic, and rehabilitative services,
including prosthetic devices;

(2) prescription drugs;

(3) ambulance and all other transportation expenses incurred in traveling to receive other
covered medical expense benefits;

(4) sign interpreting and language translation services, other than such services provided by a family member of the patient, related to the receipt of medical, surgical, x-ray, optical, dental, chiropractic, hospital, extended care, nursing, and rehabilitative services; and

(5) hospital, extended care, and nursing services.

Furthermore, Subdivision 3 provides an explanation of disability and income loss benefits, which under the statute "provides compensation for 85 percent of the injured person’s loss of present and future gross income from inability to work proximately caused by the nonfatal injury subject to a maximum of $250 per week." For self-employed workers, loss of income includes the costs incurred "to hire substitute employees to perform tasks which are necessary to maintain the income of the injured person, which are normally performed by the injured person, and which cannot be performed because of the injury."

Subdivision 3 also discusses what is required under the term "inability to work":

"For the purposes of this section "inability to work" means disability which prevents the injured person from engaging in any substantial gainful occupation or employment on a regular basis, for wage or profit, for which the injured person is or may by training become reasonably qualified. If the injured person returns to employment and is unable by reason of the injury to work continuously, compensation for lost income shall be reduced by the income received while the injured person is actually able to work. The weekly maximums may not be prorated to arrive at a daily maximum, even if the injured person does not incur loss of income for a full week. For the purposes of this section, an injured person who is "unable by reason of the injury to work continuously" includes, but is not limited to, a person who misses time from work, including
reasonable travel time, and loses income, vacation, or sick leave benefits, to obtain medical treatment for an injury arising out of the maintenance or use of a motor vehicle."