Eliminating PIP is not the answer, and here’s why

Florida should keep PIP insurance mandatory. The benefits of PIP insurance, like any other form of insurance, is never really considered until after you need it.

PIP insurance provides up to $10,000 in medical bills, lost earning capacity, and loss of household services aswell as $5,000 in death benefits. Not only does PIP cover the named insured but it also covers household residents, passengers, and pedestrians injured in a crash. Health insurance only covers the named insured. These benefits are paid without regard to fault. Medical benefits are paid within 30 days of the claim being submitted. Disability payments are paid every twoweeks. Most people with a good driving record pay less than $8 a month for full coverage. Virtually all medical providers gladly accept PIP insurance. The same cannot be said about health insurance.

As for saving money by eliminating PIP, this is speculation because no one knows howmuch more we will pay in increased premiums for bodily injury coverage, health insurance and taxes. If PIP stopped paying for medical bills then health insurance would have to pay these bills, resulting in higher premiums. If an uninsured injured person goes to a tax subsidized hospital with no ability to pay, then that hospital would seek more money fromthe county which will pass the cost onto the taxpayers. If you add in the cost of buying a disability and/or life insurance policy thatwould match PIP insurance benefits, then Floridians would actually be spending more money every year if PIP was eliminated. The cries of PIP fraud have been grossly exaggerated by the special interest groups that want to make more profits. There is no evidence there is a higher level of fraud in PIP claims than in Medicare claims. PIP insurers are making record profits and there is no shortage of PIP insurers doing business in Florida. In fact, if Florida goes to a mandatory bodily injury system, the fraud where two criminals pretend to be in an accident to collect PIP benefits would be converted to staged accidents where criminals would cause accidents with innocent victims in an effort to collect pain and suffering damages. Criminals are not going to stop being criminals.

If PIP is eliminated, tens of thousand of jobs would be lost in the medical and insurance industries. Small insurance companies and their agents will never be able to compete with big insurance companies and they would likely go out of business or downsize. Not only will big insurers eliminate hundreds of jobs in their claims processing centers, but they also will be able to avoid paying claims until the person is finished treating.

Insurance companies are not in the business of paying claims and will always fight to avoid paying claims. Insurance companies will challenge liability, injuries and treatment. This can take years. If the insurer does not make a fair offer to settle a claim, which is common, then there will be more lawsuits filed straining an already overloaded judicial system. Victims of car crashes may have towait years to be compensated for lost wages. Medical providers will have towait years to collect payment for the services rendered which will drive up the cost of medical care for everyone. Some patients will find themselves in collection for not paying their bills, resulting in damage to their credit rating.

Lastly, personal injury lawyers will benefit greatly fromthe elimination of PIP. Lawyers do not take a fee on the first $10,000 in benefits paid by PIP. If Florida eliminates PIP insurance then those lawyers start collecting fees on dollar one.

Eliminating PIP is not the answer as it will only result in big insurance companies and personal injury lawyers making more money at the expense of hardworking Floridians.

Insurance companies are not in the business of paying claims and will always fight to avoid paying claims.