Sun-Sentinel Offers Poll Regarding PIP Sunset

The news article below recently appeared in the South Florida Sun-Sentinel accompanied by a poll to ask readers “Should Florida do away with its no-fault auto insurance law, which is currently set to expire Oct. 1?”

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Florida finance chief urges Legislature to renew no-fault law

By Mark Hollis, Sun-Sentinel
Tallahassee Bureau

July 17, 2007

TALLAHASSEE–Florida Chief Financial Officer Alex Sink on Tuesday told legislative leaders in a report there are bad consequences for consumers and the state should Florida’s no-fault auto insurance law expire Oct. 1.

The law mandates all drivers must have $10,000 in personal-injury protection coverage. Gov. Charlie Crist in recent weeks has said he supports calling a special legislative session, possibly in September, to keep the law in place.

While Sink’s letter listed various reasons why legislators would want to extend the no-fault law, it does not explicitly say whether she thinks legislators should return to Tallahassee in a special session before October.

Rather, Sink says legislators and the governor should “carefully deliberate over this important issue” and warns that any action “carries enormous consequences” for motorists, employers, insurers, the courts and health-care providers.

Florida’s biggest auto insurer, State Farm, has pushed to end the no-fault insurance system this year and has promised big price cuts for policy holders in exchange.

The state’s largest insurer says Florida’s no-fault law is outmoded, rife with fraud, and rewards inflated medical expenses. But state hospitals and certain other groups have heavily lobbied to retain it, warning that emergency rooms could be flooded with uninsured accident victims if the insurance requirement goes away.

In her three-page letter, Sink, a Democrat, said financial analysts in her office have identified several concerns. While auto insurers may offer “medical payments insurance” as a replacement for personal-injury-protection coverage, Sink said such policies do not uniformly offer sufficient coverage for auto accident victims. The cost could also be high, she said, especially for people who don’t now have health insurance through their employers.

Sink also said that without the personal-injury coverage, the cost of medical treatment “may be shifted to health insurers and could mean higher costs for workers who subscribe to employer-sponsored health plans.”

With almost a fifth of all Floridians lacking group health insurance, Sink said costs also could be shifted to hospitals and doctors. Analysts also say it’s likely to increase “red tape” in getting auto accident claims paid if the law goes away.

 

• Should Florida do away with its no-fault auto insurance law? Vote at Sun-Sentinel.com by clicking here.