Florida's PIP, No-Fault Sunset Concerns Council Members
Southeast News • January 3, 2006
There is no support among Florida Insurance Council members for the outright reenactment of the no-fault/PIP statute, Sam Miller, FIC executive vice president told Insurance Journal.
Florida's ...
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Subject: Elimination of PIP has far reaching effects.
Posted On: September 12, 2007, 3:23 pm CDT
Posted By: JG
Comment:
When PIP expires this fall, there is no mandated health insurance policy to take its place. If there are no benefits mandated and you are not provided health insurance from your job, how will you get medical care? You might have to go to the hospital for emergent care or go to a clinic for treatment or physical therapy.
The hospital must treat you. You will be billed by the hospital and if you can not pay, your account will be sent to collections. If you still can not pay, the cost will be passed on to you in the form of higher taxes. Not only will you pay higher taxes for your own bills but you will also pay for every other uninsured persons seeking treatment at a hospital. The Florida Hospital Association estimates that hospitals will take$350 million dollar shortfall statewide if the PIP law sunsets. Who is going to make up the shortfall? The tax payers? Certainly not the insurance companies.
Florida Cabinet member Charles Bronson predicts that if PIP is allowed to be eliminated, the percent of uninsured drivers in Florida would dramatically increase and insurance rates for those who are insured would increase.
According to Florida Medical Business News, Department of Highway Safety and Motor Vehicles Executive Director Electra Theodorides-Bustle advised the Florida cabinet last week that her department will request a transfer of $25 million in the budget to offset a negative $29 million impact on her department if PIP is eliminated and some offices would have to close.
In addition to Florida's already increasing property taxes and the prospect of county and municipal taxes on the rise, the elimination of PIP will have impact on these issues. Currently, the state collects taxes on all casualty insurance policies, including PIP, medical malpractice, worker's compensation, etc. and distributes it back to the counties by zip code. That tax currently equals .85 percent of the gross amount of premium. This money is commonly used to help counties and cities fund their employee's pensions. Who do think is going to pay for this, the insurance companies?
Auto Insurance companies estimate that the individual will save approximately $360.00 per year on average if PIP is eliminated. Auto Insurance Companies are experiencing record profits. Do you think that the $30.00 a month you can save is really worth the overall impact on your health and finances, just to increase the insurance company's coffers?
The solution is obvious. The law must be extended to a date that allows the legislature to re-tool the law. Allowing the PIP law to sunset is economically irresponsible from a state fiscal prospective. It is also unfair for those injured and the healthcare facilities that provide treatment.
The law needs to be fixed, not abandoned. If not, every citizen will suffer in a lawless limbo.
Subject: Elimination of PIP has far reaching effects.
The hospital must treat you. You will be billed by the hospital and if you can not pay, your account will be sent to collections. If you still can not pay, the cost will be passed on to you in the form of higher taxes. Not only will you pay higher taxes for your own bills but you will also pay for every other uninsured persons seeking treatment at a hospital. The Florida Hospital Association estimates that hospitals will take$350 million dollar shortfall statewide if the PIP law sunsets. Who is going to make up the shortfall? The tax payers? Certainly not the insurance companies.
Florida Cabinet member Charles Bronson predicts that if PIP is allowed to be eliminated, the percent of uninsured drivers in Florida would dramatically increase and insurance rates for those who are insured would increase.
According to Florida Medical Business News, Department of Highway Safety and Motor Vehicles Executive Director Electra Theodorides-Bustle advised the Florida cabinet last week that her department will request a transfer of $25 million in the budget to offset a negative $29 million impact on her department if PIP is eliminated and some offices would have to close.
In addition to Florida's already increasing property taxes and the prospect of county and municipal taxes on the rise, the elimination of PIP will have impact on these issues. Currently, the state collects taxes on all casualty insurance policies, including PIP, medical malpractice, worker's compensation, etc. and distributes it back to the counties by zip code. That tax currently equals .85 percent of the gross amount of premium. This money is commonly used to help counties and cities fund their employee's pensions. Who do think is going to pay for this, the insurance companies?
Auto Insurance companies estimate that the individual will save approximately $360.00 per year on average if PIP is eliminated. Auto Insurance Companies are experiencing record profits. Do you think that the $30.00 a month you can save is really worth the overall impact on your health and finances, just to increase the insurance company's coffers?
The solution is obvious. The law must be extended to a date that allows the legislature to re-tool the law. Allowing the PIP law to sunset is economically irresponsible from a state fiscal prospective. It is also unfair for those injured and the healthcare facilities that provide treatment.
The law needs to be fixed, not abandoned. If not, every citizen will suffer in a lawless limbo.