By Julie Patel, Sun Sentinel
Florida legislators are at work on laws, backed by major insurers and some consumer advocates, to combat what they say is “rampant” fraud by policyholders and health care providers filing PIP claims. The proposed legislation would, among other things, make it more difficult for people to file claims and for lawyers to collect huge fees.
Personal injury protection, or PIP, pays medical bills for policyholders injured in auto accidents, regardless of which driver is at fault. It’s intended to protect Floridians who don’t have health insurance and to avoid lawsuits and their costs for minor injuries. Florida drivers are required to carry $10,000 worth of coverage.
Lawmakers drafting legislation say there’s a “mountain of evidence” on PIP fraud, but most of the key data come from insurance industry groups, with some from the Department of Financial Service’s Division of Insurance Fraud.
Consider these points:
Florida legislators are at work on laws, backed by major insurers and some consumer advocates, to combat what they say is “rampant” fraud by policyholders and health care providers filing PIP claims. The proposed legislation would, among other things, make it more difficult for people to file claims and for lawyers to collect huge fees.
Personal injury protection, or PIP, pays medical bills for policyholders injured in auto accidents, regardless of which driver is at fault. It’s intended to protect Floridians who don’t have health insurance and to avoid lawsuits and their costs for minor injuries. Florida drivers are required to carry $10,000 worth of coverage.
Lawmakers drafting legislation say there’s a “mountain of evidence” on PIP fraud, but most of the key data come from insurance industry groups, with some from the Department of Financial Service’s Division of Insurance Fraud.
Consider these points:
- The average payout for a personal injury protection claim increased over the past seven years — but not enough to keep up with the inflation rate for health care.
- The conviction rate for suspicious personal injury claims has dropped since mid-2007, even though the state beefed up its fight against fraud.
- Each Florida driver’s premiums were about $50 higher last year, the insurance industry says, to cover the cost of fraudulent claims, what insurers call the “fraud tax.”
PIP also helps people who are injured. Personal injury protection, or PIP, pays medical bills for policyholders injured in auto accidents, regardless of which driver is at fault.
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