An injunction holding up Florida reforms to its controversialno-fault, personal injury protection auto insurance system has beenreverse.

The First District Court of Appeals on Oct. 23 upheld reformscontained within HB 119—legislation signed into law by Gov. RickScott more than a year ago.

The ruling reverses a decision of a state circuit court judgewho issued a stay to keep insurers from implementing thereforms.

Insurance industry trade groups predictably cheered the rulingand the need of the law, which is meant to curb rampant fraud inthe system. Abuse and fraud cost the state's drivers $1 billion inhigher premiums every year, they say.

But Donovan Brown, state government relations counsel for theProperty Casualty Insurers Association of America, warns of morechallenges to reform.

“Although [October 23's] ruling was a victory for Florida'sconsumers, we anticipate those that making a living profiting offof PIP will again attempt to challenge this law,” he says, in astatement. “We hope that does not happen and Florida's consumerswill no longer be stuck in neutral.”

Sam Miller, executive vice president of the Florida InsuranceCouncil adds, “We supported the reforms and believe they will beeffective if auto insurers are allowed to implement them. We willnot, however, be surprised if additional legal challenges fromgroups which more clearly have standing are filed. This is abillion-dollar-a-year industry and much of it is fraud.”

HB 119, among other things, aims to ban PIP payments toacupuncturists and massage facilities, and requires that claimantsseek treatment with 14 days of an accident from a hospital orphysician.

Michael Carlson, executive director of the Personal InsuranceFederation of Florida, says the law “is intended to ensure that amotorist with emergency medical needs receives the maximum PIPbenefits of $10,000, but applies brakes on the costs fornon-emergency medical treatments. The Legislature took great painsto balance the goals of the PIP law: to provide prompt payment ofcritical medical and related benefits against the rampant fraud andoverbilling plaguing the system.”

The Legislative Session is just around the corner and somelawmakers are expected to contemplate repealing the PIP systementirely, says Brown.

Last session, legislation floated to end PIP but it did not gainmomentum.