Under the bill as passed, the transition back to no-fault will happen in one step: as of January 1, 2008, all drivers will be required to have no fault/PIP coverage. Insurers will be able to use the rates and forms for PIP coverage that were in effect as of September 30 without making a new filing. “For policyholders, PIP coverage will be substantially the same after January 1; changes to the law will affect how insurers deal with the PIP claims process, and it should be a more workable, streamlined system after January 1,” said Cecil Pearce, AIA vice president, Southeast Region.
Reforms approved focus on reducing medical costs, reducing the amount of litigation and eliminating fraud. They include: a medical fee schedule that pays 200% of Medicare; increases from 15 to 30 days the amount of time that insurers have to respond to a claimant’s demand letter; requires claimant to consolidate all claims in one demand letter; makes certain healthcare providers ineligible for PIP payments, and; that and insurers must advise policyholders by November 15 of the PIP requirement.