Florida Leaders Seek Savings from PIP Reforms

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Key Florida lawmakers are running out of patience with the state’s fraud-plagued no-fault auto insurance system.

Senate President Don Gaetz , R-Niceville, told The Associated Press he isn’t persuaded that reforms to the personal injury protection (PIP) coverage passed last year have yielded lower premiums for ratepayers.

“Frankly I’m disappointed in the PIP insurance companies,” Gaetz said. “They promised savings. I want to know where the rate savings are.”

Industry analysts say it’s too early to tell what effect the new provisions, many of which just went into effect Jan. 1, will have on costs.

Under no-fault PIP coverage, a driver’s insurer is required to pay up to $10,000 for medical bills and lost wages no matter who is at fault in an accident.

Last year’s reform, designed to crack down on fraud, put a 14-day limit on seeking treatment following a crash and capped benefits at $2,500 unless a medical doctor or other medical professional, excluding chiropractors, determines the injured person has an “emergency medical condition.”

House Speaker Will Weatherford said he shares the Senate president’s concerns. “I supported changes to Florida’s personal injury protection laws and believe they were necessary to protect consumers,” Weatherford, R-Wesley Chapel, said. “I also share Senate President Gaetz’s concerns and believe we must ensure the law is implemented correctly.”

Michael Carlson, of the Personal Insurance Federation of Florida, said it’s too early to measure savings. “We’ve got to see what the marketplace does,” he said. “We hope it’ll turn in the right direction.”

Gov. Rick Scott is on record that he wants PIP fixed or ditched.