As 2012 came to a close, it remained unclear whether the Florida Legislature’s sweeping reform of the state Personal Injury Protection statute would deliver on the lofty promises of its architects. Or whether it would remain intact.The last few months of the year saw the new law face constitutional attack, and reports showed that, at least for now, many insurers have no plans to pass any savings onto consumers in the form of rate reductions.
Almost from the moment the gavel came down on the spring legislative session, its most trumpeted accomplishment had come under withering criticism from many who worried the new PIP law would harm consumers in numerous ways. It prevents motorists from seeking reimbursement for massage or acupuncture therapies in treating their auto accident injuries, it sharply reduces what injuries qualify for full coverage, and it requires accident victims to seek treatment within 14 days, among other key changes.
Many of the law’s critics have pledged to challenge the reform measure in court. One group of health care providers became the first to make good on the threat, challenging the law’s constitutional integrity. The lawsuit, filed by the state’s complementary health care community, takes particular issue with the decision to eliminate acupuncturists and massage therapists from the list of approved PIP providers and cut deeply into chiropractors’ fees with a $2,500 limit on non-emergency injuries. The suit also maintains that the reform’s mandate that injured drivers seek treatment within 14 days or lose their rights to medical coverage is arbitrary and not medically justified.
Such cases tend to be complicated and time-consuming, so it may be many months before we see how this action will end up. But the plaintiffs appear to be determined. In early December, they dropped their initial challenge in state court and refiled it in federal court.
Meanwhile, another debate is brewing – over whether consumers will ever see the economic relief PIP reform was designed to deliver. The state’s top officials, after all, had repeatedly insisted that reform of such magnitude was needed so that Florida can get out from under its shameful record for boasting one of the highest PIP premium averages in the country.
But on Oct. 1, the deadline for insurers to pass those savings onto Florida consumers or explain why they can’t came and went without much relief. In at least half the cases, in fact, rates actually went up — by up to 26.3 percent. Insurers, for their part, are saying reform is working because those rates would have gone up even higher if not for the measures put in place beginning July 1.
An actuarial firm hired by the state, though, estimated that the reforms could reduce PIP premiums by 12 to 20 percent beginning in 2013 – an assessment the insurance industry immediately rebuked as “misleading” and “overly optimistic.”
One top state official appears to be growing impatient with the industry’s hand-wringing. Chief Financial Officer Jeff Atwater is talking tough with insurers, telling them to quit complaining and get on with reducing rates for motorists.
“I am comfortable that if assaults on the courts are unsuccessful and the bill can stand, there will be more than 25 percent savings,” Atwater told the Tampa Bay Times in a Nov. 29 article. “We don’t have to gnash about it, argue about it, whine about it or cry about it.”
Amen to that. Judging by the questions left on the PIP landscape as 2012 came to an end, 2013 should be an interesting year.
