Friday, June 15, 2007

Is PIP gone for good?

When Jeb Bush vetoed an attempted revision of the Florida PIP statute last year, it started a clock ticking which will run down on October 1, 2007. If nothing else is done, the no-fault insurance system that has been in place for the last 36 years in Florida will go the way of the dodo after that date. Insurance carriers say this will cause auto insurance rates to go down. Hospitals argue that this will simply shift the cost of care to them. It looks like they're both right.

Tom Zucco wrote a good piece on the issue recently in the St. Petersburg Times.

There are also some rumors being reported that the legislature might come back for yet another special session in September to consider the PIP issue again. If Colorado's experience with allowing PIP to sunset is any indicator of what Florida faces, I would expect a pretty big battle between insurance and the healthcare industry on this issue. Expect the healthcare lobby in Tallahassee to put a lot of pressure on lawmakers to bring up this issue once more before October 1st.

3 comments:

Anonymous said...

Is this really going to save money?

pATRICK said...

Good question, Jim, but I don't have the answer. If Colorado is any example, it looks like it doesn't really SAVE money as much as it shifts it around. People wind up paying less on their car insurance, but probably pay more for healthcare, healthcare insurance, etc. in the long run.

Anonymous said...

THAT's what we need right now, LOL!

 
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