After almost half a century, Florida's no-fault car insurance system would end by 2019 under a bill proposed by state Sen. Jeff Brandes, a Republican from St. Petersburg, the Palm Beach Post reported.
This is good news for drivers who are required by the state to buy Personal Injury Protection (PIP) medical coverage for car accidents — even though they already have health insurance, such as Medicare.
Florida drivers pay the nation's fourth-highest car insurance premiums, and the state is one of a handful with a no-fault system, according to the newspaper.
"The system is broken and rife with fraud and abuse," Brandes told the Palm Beach Post. "There is no amount of tweaking that will fix PIP. Florida can do better, and this repeal will force policymakers to address this important issue impacting every driver in our state."
SB 1112 was filed on Dec. 11, and would repeal the law requiring drivers to buy $10,000 PIP coverage to pay for injuries regardless of who is at fault in an accident.
The system was designed in the 1970s to reduce lawsuits and get claims paid quickly. Despite repeated attempts to fix it, it has been plagued by fraud, overflowing lawsuits of its own and high premiums for relatively little coverage, the Palm Beach Post reported.
According the newspaper, other attempts to kill PIP have failed as interest groups including hospitals and insurers lobbied to protect the system. Gov. Rick Scott has said he wanted to preserve PIP and give reforms a chance to work. But Brandes has been an important player driving the agenda on Flood insurance and other issues, and his sponsorship could matter a lot.
Scott "will review any legislation that makes it to his desk," a spokeswoman told the newspaper last week.
Industry reaction
A group representing hospitals argues that killling PIP would still leave big problems for the state to solve.
"While more Floridians have health care coverage through the Affordable Care Act, there are nearly 3 million people in Florida who remain uninsured," the Florida Hospital Association said in a statement to the newspaper. "PIP serves as the only form of coverage for uninsured individuals who seek emergency care following an auto accident. If PIP is eliminated, coverage for uninsured motorists must be addressed through options such as medical payment policies, which provide a limited form of insurance coverage."
The Personal Insurance Federation of Florida, representing some of the state's biggest car insurers, has "yet to consider and discuss this legislation" and had no immediate statement, executive director Michael Carlson told the Palm Beach Post.
Join us on Facebook and give us a Like!
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.