As of 1/1/2013 Florida, lawmakers are getting tough on auto/motor insurance
fraud. A new law designated as House Bill 119 is designed to address
weaknesses in their Personal Injury Protection (PIP) program and it
goes into effect this year. Personal Injury Protection pays for
medical bills, lost wages and certain other expenses incurred by those
injured in an auto accident. When it comes to auto insurance costs,
PIP coverage is mandatory for drivers in Florida, and it accounts for
about 20 percent of the total premium depending on the type of
coverage you may have.
This new law defines insurance fraud as "knowingly presenting a PIP
claim to an insurer for payment or other benefits on behalf of a
person or entity that committed fraud when applying for health care
clinic licensure, seeking an exemption from clinic licensure, or
demonstrating compliance with the Health Care Clinic Law."
PIP fraud occurs largely with the help of hospitals, doctors, or
clinics that are billing for false treatments, or which are providing
bogus medical reports outlining injuries that never really existed.
As part of the new law, certain types of treatment will no longer be
covered under Florida's PIP program, such as massages or acupuncture.
There is also a much lower cap on payments for non-emergency
treatments from $10,000 down to $2,500.
The new laws allows for the punishment of those who submit false PIP
applications for benefits. While this is already illegal in Florida
under other insurance fraud statutes, the new law focuses on PIP
benefits and serves to reiterate the penalties for false motor insurance applications.
