January 16, 2012
By: Carrie Van Brunt-Wiley
Lawmakers in Florida have proposed a series of new laws intended to reform the state's auto insurance market and reduce fraud related to mandatory personal injury protection.
One bill would require those hurt in an accident to go to a hospital or hospital clinic for treatment, instead of so-called pain clinics, which have come under significant scrutiny. In addition, it would set a specific time frame during which injured parties would need to seek treatment for personal injury protection coverage to be applied.
Another proposal, introduced by state Senator Joe Negron, would put a fee reimbursement schedule in place, revise bill payment procedures and work to prevent fraudulent claims from being made.
Negron said that the goals of working to "eliminate fraud in the PIP system and make sure legitimate health care providers are paid in a timely manner" will help make sure Florida auto insurance rates remain as affordable as possible.
The PIP system was introduced in 1972 to ensure those injured in accidents would receive prompt medical treatment. However, growing incidents of fraud have made the system a frequent target for staged accidents.
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