Susie
08-28-2007, 06:09 AM
http://www.bizjournals.com/orlando/stories/2007/08/27/daily7.html?ana=from_rss
Bill aims to revive a reformed PIP insurance
Orlando Business Journal - 2:57 PM EDT Monday, August 27, 2007by Brian BandellSouth Florida Business Journal
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State Rep. Ellyn Bogdanoff, R- Fort Lauderdale, has released a bill that would keep personal injury protection auto insurance from expiring and make significant changes to the system.
The mandate for $10,000 in PIP coverage will sunset on Oct. 1 unless state legislators pass a bill to revive it at a special session. So far, the Sept. 18 special session is to focus on state budget cuts, but Bogdanoff is optimistic her PIP bill will get enough support to get into the mix.
"The House is willing to bring it into special session, provided it doesn't become an industry food fight," she says. "If it distracts from the budget issues, it isn't worth it."
Her bill aims to weed out fraud and reduce the litigation surrounding the PIP system. The insurance would still cover $10,000 for emergency transport, emergency care within three days of the accident, surgery and associated care and lost wages. For all other services, the coverage would be the smaller amount of $5,000 or the remaining amount left over from emergency/surgical care. That means there would be less coverage available for visits to doctors and chiropractors.
However, patients will have their 20 percent co-payments and the option for a $2,000 deductible eliminated. If patients opt to join a managed care network of health care providers contracted with the insurance company, they would get a lower premium.
Both attorneys and medical provides would face some payment restrictions.
Medical providers should charge no more than the "usual and customary" rate for services. These charges have already been litigated and this should give the insurance companies more predictability in what their charges will be, Bogdanoff said. The price of services, which the current PIP system doesn't address, is one of the most common reasons for lawsuits.
The bill would make capricious denial of meritorious claims by insurance companies an unfair trade practice subject to penalty.
Attorneys seeking PIP money in minor claims will be limited to fees of $5,000 or three times the amount they win - whichever is greater. So the maximum fee for an attorney would be $30,000 per client.
Bogdanoff believes most insurance companies will be fine with this bill, but trial attorneys will protest.
"Not everybody is enamored with it, which tells you it is a good bill," Bogdanoff says.
She plans to meet with lawmakers next week to gauge support for her bill.
Bill aims to revive a reformed PIP insurance
Orlando Business Journal - 2:57 PM EDT Monday, August 27, 2007by Brian BandellSouth Florida Business Journal
Print this Article Email this Article Reprints RSS Feeds Most Viewed Most Emailed
State Rep. Ellyn Bogdanoff, R- Fort Lauderdale, has released a bill that would keep personal injury protection auto insurance from expiring and make significant changes to the system.
The mandate for $10,000 in PIP coverage will sunset on Oct. 1 unless state legislators pass a bill to revive it at a special session. So far, the Sept. 18 special session is to focus on state budget cuts, but Bogdanoff is optimistic her PIP bill will get enough support to get into the mix.
"The House is willing to bring it into special session, provided it doesn't become an industry food fight," she says. "If it distracts from the budget issues, it isn't worth it."
Her bill aims to weed out fraud and reduce the litigation surrounding the PIP system. The insurance would still cover $10,000 for emergency transport, emergency care within three days of the accident, surgery and associated care and lost wages. For all other services, the coverage would be the smaller amount of $5,000 or the remaining amount left over from emergency/surgical care. That means there would be less coverage available for visits to doctors and chiropractors.
However, patients will have their 20 percent co-payments and the option for a $2,000 deductible eliminated. If patients opt to join a managed care network of health care providers contracted with the insurance company, they would get a lower premium.
Both attorneys and medical provides would face some payment restrictions.
Medical providers should charge no more than the "usual and customary" rate for services. These charges have already been litigated and this should give the insurance companies more predictability in what their charges will be, Bogdanoff said. The price of services, which the current PIP system doesn't address, is one of the most common reasons for lawsuits.
The bill would make capricious denial of meritorious claims by insurance companies an unfair trade practice subject to penalty.
Attorneys seeking PIP money in minor claims will be limited to fees of $5,000 or three times the amount they win - whichever is greater. So the maximum fee for an attorney would be $30,000 per client.
Bogdanoff believes most insurance companies will be fine with this bill, but trial attorneys will protest.
"Not everybody is enamored with it, which tells you it is a good bill," Bogdanoff says.
She plans to meet with lawmakers next week to gauge support for her bill.