Five Ways the PIP "Reform" Bill Fails to Help Consumers

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Consumers, you're screwed.
Gov. Rick Scott was so eager to pass a car  insurance reform bill last week that he sent personal thank-you notes to the lawmakers who supported it. The personal injury protection (PIP) insurance bill was a cornerstone of his legislative agenda.

"This is a bill that delivers on my promise to reduce the cost of living in this state by reducing fraud, stopping the growing cost related to accident fraud and ultimately saving Floridians money that otherwise would have found its way into the pockets of fraudsters, unethical providers and trial lawyers," Scott's office said in a news release when HB 119 passed. "I applaud the legislature for this decision that will help every Floridian policyholder."

But voters should know that Scott hardly ever worries about consumers. Remember,
his former company committed the biggest health-care fraud in American history. Likewise, his PIP reform bill is little more than a clever marketing ploy.

5. It doesn't guarantee lower insurance premiums. All Florida drivers are required to carry PIP insurance that covers them for $10,000 in medical costs and lost wages if they are in an accident. But they won't necessarily pay less for that coverage under this bill. The 10 percent PIP insurance rate reduction is optional. Insurance companies can refuse to lower the rate if they give a written, detailed excuse.

4. It doesn't eliminate accident clinics or unscrupulous referral services. The bill does not outlaw for-profit referral services such as 1-800-411-PAIN and 1-800-ASK-GARY that direct accident victims to specific chiropractic clinics and lawyers in their networks. As long as the clinics get a physician to say their patients have a medical emergency, they can use the entire $10,000 PIP benefit. However, if a doctor says the patient is not having an emergency, only $2,500 in benefits can be used.

If this puts some unscrupulous referral services and chiropractors out of business, that would be lovely. But it may also hurt smaller chiropractors who treat patients with non-emergency injuries.

3. It will almost certainly create legal battles over the meaning of a "medical emergency." For all the talk about cutting down on legal fights over PIP payments, this bill just creates a new fight. How does one prove what constitutes a medical emergency? The trial lawyers and insurance companies will be debating this endlessly.

2. People with legitimate injuries may run out of coverage. If an injury is not ruled an emergency, the victim is entitled to only $2,500 worth of coverage. That small amount could be eaten up by initial tests, so longer-term therapy -- for, say, an injured back -- becomes unaffordable.

1. It's a big wet kiss to the insurance industry. Insurance companies lobbied hard for this bill, and they love it, because their payouts to consumers could plummet from $10,000 to $2,500. And remember, they don't have to lower premiums.


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Help will with his bills
Help will with his bills

On Tuesday, April 10, 2012, William Brunson was in a severe motorcycle accident, when a truck with a horse trailer pulled out in front of him. Will's family sets up a blog donation in Will and Michelle's name for People to help them. If you feel you would like to donate use the donate button below. 100% of the donations go to William and Michelle.

shag11
shag11

 The people of Florida should be proud of electing this right-wing felon. "The American people are smart" is one the biggest lies a politician tells. Either they are easily swayed by 30 second soundbites or, they don't vote, and this is what they get. Elections have consequences people.

luis romero
luis romero

THE NEW PIP REFORM 2012LAW, THE BIGGEST FRAUD OF ALL ON THE FLORIDA CITIZEN BY THE INSURANCE LOBBYMACHINE

WOW - the newly passed PIPreform HB 119 is the biggest fraud ofall on the Florida citizen. Instead of going after the fraudsters (asthey promised), they passed “PIP REFORM” decreasing citizen medical benefits,access and choice…and the poor citizen gets to pay the same high premiums.

Here’s what happened (read it yourself at HB 119):

·        The insurance companies can continue to charge thesame high premiums, BUT the citizen only gets $2,500 in medical benefits insteadof the previous $10,000 - unless they’re severely injured, good luck with only$10,000 on that one.

·        Instead of going after the true fraudsters (asthey promised and should have done), the insurance lobby went after the Floridacitizen.

·        The insurance companies will make record, recordprofits (as they always make…year in, year out) off this law. Same highpremiums, 75% less benefits ($2,500 versus previous $10,000), you figure itout!

·        The insurance companies have already starteddonating (paying back for their vote) money to the political cronies that votedfor this travesty on the citizen - in the sum of millions of dollars.

This is “great for the Florida consumer,” says Gov. Scottyand his cronies…really???? WOW! Talk about crony corruption/capitalism, WOW!

WAKE UP Florida citizens/voters…these cronies didn’t goafter PIP corruption (as they said they would and should have done – they justused that excuse to short-change the Florida citizen); they passed “PIP Reform”so that their insurance buddies can continue to make record profits.

 Instead of passingtrue PIP reform by going after the real crooks (as they promised), theydefrauded the Florida citizens by once again stealing their money in thebiggest fraud of all – throw the crooks out!!!!!

G_siegel
G_siegel

Ricky you are pathetic! We would all love to ask your true, honest intent behind this new law but I am sure that if pressed you would simply plead the 5th like you did when you were questioned under oath about your company's fraud - 75 times! You claim of fraud involved with PIP benefits?? You are nothing but an arrogant hypocrite and how anyone voted for you is truly amazing. YOU Ricky are the true fraud!!

Miamibeachdoc
Miamibeachdoc

S the insurance companies have the option to lower their premium rates to consumers -or- have to tell them why? I think they'll be sending the letter why...Since it only costs a postage stamp. 

And, your blog focuses on "referral services and unscrupulous chiropractors". Let's be fair, there are many non-chiropractic medical clinics & PT-Rehab Centers that are unscrupulous. Unethical behavior knows no bounds. 

One other BIG problem for consumers is, often symptoms in the beginning are mild and are initially taken care of at home with an ice pack, a hot pack, tiger balm or an Advil. But after several weeks or a month of the symptoms not going away. Then when they realize their home remedies are not working, they present to the MD/DO or DC physician with complaints and a history pointing to the motor vehicle accident as the provocative incident.   But if they go to the doctor on day 15. Well, the PIP insurance company wins because they now wash their hands of it. 

The public loses bad on this. Why? Because with this legislation, their injuries will be covered with their health insurance causing their health insurance premiums to increase.  

Remember one thing. The PIP insurance companies aren't losing money. They just don't want anything cutting into their profits. Here's a cut-n-paste from Bloomberg:

BLOOMINGTON -- State Farm Insurance Cos. posted a $1.8 billion profit last year (2010) and saw its net worth rise by 5 percent, bolstered by gains in its stock portfolio and smaller underwriting losses, the company said Tuesday.The Bloomington-based insurer's profit was more than double the $777 million it posted in 2009. State Farm's net worth rose to $61.2 billion, and Chairman and CEO Ed Rust Jr.'s largely performance-based annual earnings climbed 8 percent, to $10.2 millionReference: http://www.pantagraph.com/busi... 

So let's stop the rhetoric and protect the people of Florida. 

Pete Pepper
Pete Pepper

So THIS is why my car insurance went through the roof.  Gee, thanks Voldamort, oh sorry Rick Scott.  Thanks to you I had to cut nearly everything out of my insurance down to the bare minimum because my insurance went near 2500 every six months which I could not afford.

City Activist Robert Walsh
City Activist Robert Walsh

Sure Gov.goober send them al to the ER-the most expensive place to go. But if they go to a Solantic Clinic(yours) then take the PIP all day . Right.Always looking after his own pocket book-not ours. Another squeeky pig-

Obermann
Obermann

When do we get to vote this guy out? 

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