Florida Makes Major Changes to Car-Accident PIP Coverage
Florida lawmakers saw a need to reduce burdens on the state's PIP system. Starting on July 1, 2012, residents will see big changes to the benefits they can receive after car accidents.
July 01, 2012
Every Florida driver is required to carry personal injury protection insurance. PIP coverage, also called "no-fault insurance," pays for medical care for injuries sustained in a car accident, regardless of who was at fault.In recent years, Florida's PIP coverage has become very expensive. Some commentators blamed the price hike on unscrupulous medical providers who tried to get the maximum $10,000 benefit out of every patient. Others attributed the price increases to the insurance companies' own profit motives.
Regardless of the reasons, Florida lawmakers saw a need to reduce the burdens being placed on the state's PIP system. As a result, starting on July 1, 2012, Florida residents will see big changes to the benefits they can receive after car accidents.
Treatment Options Will Be Limited
Accident victims will only be entitled to the full $10,000 in PIP benefits if they experience an "emergency medical condition." Lesser injuries -- including most soft-tissue injuries -- will be subject to a $2,500 benefit cap.
Only a special class of medical providers will be able to certify that a victim experienced an emergency condition. Medical doctors, osteopaths and dentists are among that class, but chiropractors are not.
Accident victims will be denied PIP benefits altogether if they do not seek medical treatment within 14 days. Some treatments -- like acupuncture and massage -- will no longer be covered at all.
Changes May Not Reduce Premiums
It is unclear whether the changes will translate into lower premiums for Florida drivers.
When the law was being drafted, many lawmakers advocated including provisions that would require insurance companies to drop their prices. In the final version of the bill, mandatory price constraints were dropped in favor of voluntary guidelines. PIP companies are encouraged to implement a 10 percent premium reduction by October 2012 and a 25 percent reduction by 2014.
The changes may make it harder for some accident victims to treat their injuries. If you have been injured in a car accident, a Florida personal injury attorney can help you get the benefits you are entitled to.
Article provided by Winters & Yonker P.A.
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