Could This Be The End of PIP Coverage?

Florida is one of few states that still has a No-fault(PIP) System. Florida requires a driver to carry $10,000 in PIP coverage to cover his own medical costs, even if he is at fault.

The new Pip Law that went into effect January 1, 2013 was suppose to stop insurance fraud and reduce premiums by eliminating certain medical care and limiting benefits for treatment that was not deemed an “Emergency Medical Condition”. Chances are the law was going to do neither of those things. In fact, a targeted 10 percent savings on Florida PIP premiums under the new state law by the start of 2013 wound up being closer to an average of 1 percent.

Thankfully, Judge Terry Lewis in a very well reasoned opinion ordered a PIP Temp Injunction on March 15, 2013.

The state’s Office of Insurance Regulation filed an appeal Thursday. “This appeal will act as a stay of the injunction order until the 1st District Court of Appeal rules on this matter,” said state insurance office spokeswoman Amy Bogner.

The new law as written, required a finding of an emergency medical condition as a prerequisite to payment of PIP benefits, and prohibited payment of benefits for services provided by acupuncturists, chiropractors, and massage therapists.

Clearly the best way to reduce insurance fraud and reduce premiums is to do away with PIP altogether. In comments by Governor Scott on thursday, there is hope that he will push legislators, to do just that. Gov. Rick Scott said it was “appropriate” for legislators to consider options including ditching the no-fault system in place for more than four decades.

One of the architects of the bill Scott fought to pass last year, Senate sponsor Joe Negron, R-Stuart, said now is an ideal moment to consider scrapping the state’s Personal Injury Protection system and replacing it with mandatory bodily-injury liability coverage.

Colorado dropped the No-Fault system in 2003, and drivers saved 35 percent on their overall auto insurance bills.

As a Miami Car Accident lawyer, I fully support doing away with the No-Fault law. Getting rid of PIP will more importantly get rid of all the unscrupulous clinics that advertise for PIP benefits, and induce people to seek treatment at their facilities. This is how you reduce fraud and in turn reduce insurance premiums.