Every injury lawyer should keep an eye on whether Governor Charlie Christ calls a special session this Fall or sooner to consider extending Florida’s No-Fault Law. Personal Injury Protection is set to sunset on October 1, 2007.
For 36 years, Florida drivers have been legally required to carry at least $10,000 in insurance to cover their medical bills in the event of a crash, no matter who was to blame. While Big Insurance succeeded to kill attempts to continue the law in the regular session, Gov. Crist has made it clear he wants the PIP extended. Last week, Gov. Crist said he may call a special session no later than September.
What happens to no-fault will not only affect every driver in Florida and the price of insurance, but also hospitals, chiropractors, specialist medical clinics and lawyers who specialize in auto crash cases. Powerful economic interests on both sides of the issue have put tens of thousands of dollars into advertising campaigns to sway politicians and public opinion.
Arrayed against Crist, auto insurers say the demise of Florida’s no fault law will reduce what they claim to be fraudulent claims that have lead to increased car insurance rates. State Farm, the state’s largest insurer, already has filed for new rates that, on average, are 16 percent lower than under no fault.
Hospitals and trauma centers fear that switching from a no-fault system to what’s known as a tort system, which happens if PIP goes away, will delay reimbursements for care provided to accident victims. To collect those costs, hospitals may have to sue, boosting their legal costs.
The Florida Hospital Association, which wants to preserve the no-fault system, predicts that eliminating PIP will cost the state’s hospitals and trauma centers at least $350 million a year as they foot the bill for drivers who have no health insurance, according to Richard Rassmussen, a spokesman for the association. They say health insurers that provide group health insurance plans also will likely face higher costs that they would pass on to their customers.
