Lawsuit Filed Over New PIP Law; Auto Insurance Rates Not Decreasing

A group of chiropractors, massage therapists, and acupuncturists have filed the first of numerous anticipated lawsuits over Florida’s recently overhauled personal injury protection (PIP) law. In their suit against the State of Florida, the plaintiffs allege that the new law “imposes sweeping changes and significant restrictions on both health care providers and consumers.”

Under the new law, which the Florida legislature passed in March of this year, Florida residents and other covered individuals who suffered personal injuries following an auto accident are limited to $2,500 in PIP coverage for their medical bills unless they sought medical treatment within 14 days of the accident and a doctor states they had an “emergency medical condition.”  Previously, this no-fault insurance provided up to $10,000 of coverage for medical treatment, including chiropractic treatment as well as massage therapy and acupuncture, without the 14-day and emergency restrictions.  Now, the PIP law excludes massage therapy and acupuncture from coverage entirely.

Florida governor Rick Scott and other proponents of reforming the PIP statute assured Florida residents that the new law would reduce auto insurance premiums.  However, a loophole in the law allows insurers to avoid reducing their premiums and even increase them as long as they provide a reason for doing so.  Nearly eight months after the PIP law passed, auto insurers have not yet reduced any premiums.  In fact, State Farm recently proposed increasing the PIP portion of its insurance by 22 percent, but it is willing to settle for a mere 7.9 percent increase.