Actuaries report shows PIP reform will benefit Florida consumers
TALLAHASSEE, Fla. (Aug. 3, 2012) – The R Street Institute welcomed today’s release of a draft report from Pinnacle Actuarial Resources Inc. that shows the recently passed H.B. 119 should reduce costs that have plagued Florida’s personal injury protection auto insurance market.
Signed by Gov. Rick Scott earlier this year, H.B. 119 requires PIP claimants receive treatment from a doctor or hospital within two weeks of an accident, while proscribing treatment from acupuncture and massage facilities. The law also raises penalties for fraud and sets limits on attorneys fees.
According to Pinnacle’s draft study, the legislation could cut the actuarially indicated premiums required for the PIP portion of Florida auto insurance by as much as 12 to 20 percent. However, the Florida Office of Insurance Regulation has cautioned that it is premature to draw conclusions from the report about the direction or degree of savings for consumers, as auto insurers already typically file rates that are below the indicated rate.
“The draft of this report shows that recent reforms to the PIP law will provide savings that should benefit consumers,” said Christian R. Cámara, R Street’s Florida director. “Because certain provisions of the bill do not take effect until next year, it is currently difficult to fully gauge the extent of those savings. Regardless, this draft demonstrates that passing HB 119 was the right thing to do for Florida consumers.”
R Street is a non-profit public policy research organization that supports free markets; limited, effective government; and responsible environmental stewardship. It has headquarters in Washington, D.C. and branch offices in Tallahassee, Fla.; Austin,Texas; and Columbus, Ohio. Its website is www.redesign.rstreet.org.
