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The Unfortunate Revival Of PIP

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The Tampa Tribune

Published: October 8, 2007

It once appeared dead, but now it's alive - or at least it will be Jan. 1.

The Florida Legislature voted Friday to revive the state's no-fault auto insurance law, making it mandatory that drivers buy personal injury insurance coverage. Required PIP coverage expired on Oct. 1.

We would have preferred PIP coverage to go away because for most drivers it is duplicative. Still, this legislation has some benefits.

It will restore $10,000 in medical coverage for anyone hurt in an accident, regardless of fault. This will save hospitals and trauma centers about $320 million - the estimated amount they would be unable to collect from patients with no other medical coverage. Plus, the new legislation sets aside $5,000 for 30 days after an emergency room visit is reported to make sure emergency room physicians get paid.

We are not convinced, however, that the legislation will do much to negate fraud.

Yes, it includes a fee schedule to limit the number of procedures performed in PIP clinics, where the gouging has been most prevalent. But when there's money to be had, unscrupulous lawyers, doctors and chiropractors will continue to find ways to get their hands on it.

Though PIP coverage has not engaged the public, lawyers, doctors, hospitals and insurance companies all had a lot to say about it. In the end, most of these powerful special interests got what they wanted.

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