NJ Addressing Its PIP Woes
The state of New Jersey is addressing its auto insurance woes. Every 24 months the state has to evaluate how it deals with PIP or personal injury protection laws. The state is known for allowing drivers too much leeway with its laws. Now the Department of Banking and Insurance is going to change the rules so that many of the loopholes can be shut so that auto insurance companies and the state can save money at the time.
One change will impact the clinics and pain management centers that treat accident victims. Many of these places have been gaming the system and overbilling auto insurance companies for their services. They have proposed that a fee schedule be created and put in place so that clinics and outpatient centers can only charge certain amounts of money for their services. This will help to keep medical costs low.
Doctors who want to appeal the fact that an insurance claim that they have submitted has been denied would be allotted only five days to do so. This will help to make the claims process go faster and prohibit doctors from appealing a claim months after the claim has been denied. The state is working feverishly because they spend more than one billion dollars each year to handle insurance claims and cases that are being addressed through arbitration.
It is important to address this issue because many people game the system and it makes it harder for New Jersey drivers to be able to afford their auto insurance premiums. New Jersey residents are struggling right now and it is important for these loopholes to disappear. As the system stands, New Jersey drivers can buy PIP coverage that has up to a quarter of a million dollars in benefits. This has made it so that many people and clinics take advantage of the system for their own gain. The proposed changes will help but it is important for everyone to work together so that the arbitration system can be fixed so that drivers do not exploit it.
Source: Insurance Journal
