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Change in PIP Law

Changes are brewing to the state’s personal injury protection (PIP) law that could have a damaging impact on Florida hospital finances. While anti-fraud laws that have been enacted by the Florida legislature and enforced by the Florida Department of Insurance should be commended, the PIP law changes now under consideration would have serious negative consequences.

Auto insurance companies frequently underpay or unlawfully decline PIP claims. However, the law now provides a path for hospitals and other medical providers and insured patients to recoup that loss. Currently, insurers are responsible for payment of legal fees incurred by hospitals, providers and patients when a claim is successfully resolved.

This session, the state Legislature will be considering PIP law changes, including dramatically capping legal fees. That step would make it impractical for law firms to represent hospitals, providers of health care services and patients in PIP claims, in effect denying access to the courts to resolve a claim regardless of its merits.

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