No-fault car insurance left in limbo
A House bill that would have eliminated personal injury protection, or PIP, and replaced it with a $15,000 mandatory medical payment coverage for emergency care in trauma units and emergency rooms did not get taken up before the Legislature adjourned Friday afternoon.
The bill, which also contained a fee schedule, was very different from the Senate’s bill, which extended PIP for another few years.
It is unclear what is next for the no-fault system, which pays for accident injuries to a driver and passengers regardless of who is at fault. PIP is set to expire in October. Gov. Charlie Crist said he might want PIP taken up at the special session for property tax reform in June.
Auto insurers have been clamoring for years for the state to do away with the $10,000 mandatory coverage because the law contains no fee schedules and few safeguards, making it highly susceptible to abuse and fraud. Crooked doctors and clinics have run up medical bills for many accident victims to use up the full $10,000 coverage for millions of dollars in losses, costing insurance companies and consumers.
Hospitals and other healthcare providers have lobbied to have the law extended. They claim they would lose $250 million if they can’t charge PIP for services. They also say that for some consumers, PIP is the only insurance they have.
”Florida’s hospital community is extremely disappointed that the Legislature did not address the PIP sunset,” Jim Nathan, the Florida Hospital Association chairman, said in a statement. Hospital employees sent over 100,000 e-mails asking legislators to support the continuation of PIP or replace it with alternative coverage, the FHA said, and the Tallahassee-based trade group will be calling for PIP to be added to the upcoming special session.
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