Legislature May Reform PIP

Eddie Farah

Attorney
(866) 735-1102 Ext 415

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We see it every day. A person injured in an auto accident goes to the doctor for common pains that result. Even without health insurance, Personal Injury Protection or PIP, which every person pays for as part of their auto policy, can mean the difference between finding problems or letting chronic conditions go undiagnosed.

But the insurance lobby wants to get rid of PIP and the up to $10,000 they have to shell out under its protection. It is set to sunset in October, but Tallahassee lawmakers are trying some last minute reforms to keep PIP alive.

The Senate Banking and Insurance Committee has introduced SB 1880 that keeps PIP alive until January 2009.

Insurers did include a cap on payments to doctors and hospitals for medical care.

The compromise is the "last ditch effort to save this bill for the people who really need it," said Sen. Bill Posey, R-Rockledge, the bill's sponsor.

Insurers claim that fraud has tainted PIP protection and that rates will go down for drivers if PIP is allowed to sunset. Drivers would be able to purchase additional medical coverage rather than the automatic coverage PIP provides.

But hospitals, doctors and health providers said the insurance companies want to shift the cost burden onto the health industry, which is already plagued by skyrocketing rates.
The $350 million that is paid out under PIP by insurance companies every year will have to be made up somewhere, they said. They argue that local taxes may have to be raised to help emergency rooms - which by law cannot turn anyone away - treat accident victims without health insurance.

Legislators want to know how you feel about this important issue during the 2007 session.