Hillsborough County, in Florida, has passed regulations that crack down on auto insurance fraud, and the fraudulent medical clinics that enable it. The county is tired of waiting for the State of Florida to fix the problems with the no-fault auto insurance that leads to insurance fraud.
Florida is one of the states that has no-fault auto insurance. It is a personal, (or individual) auto insurance policy that, in many ways, functions like a typical auto insurance policy. It does have some significant differences, however.
Let’s say that two people get into a “fender bender” in a state that does not use “no-fault” insurance. One of these two drivers will be considered to be at fault. Insurance claims will be sent to that driver’s insurance company, who will pay for the cost of the damages to the other driver’s car. It will also pay for the medical bills for the injuries of the people in the other person’s car.
The insurer of the person who got hit doesn’t have to pay out anything at all. The only problem is if the guy who caused the accident didn’t have any car insurance. In that case, the person who got hit would pretty much be out of luck.
This is where “no-fault” insurance comes in. When two people in Florida get into an auto accident, the insurance of both of the drivers pays for the damages. The good part of this system is that people who have insurance, but get hit by an uninsured driver, still have coverage for the damages that the other driver caused. This type of insurance requires drivers to give up their right to sue the other driver who was involved in an accident.
There are problems with the “no-fault” system, though. The Hillsborough County Board of Commissioners have passed a series of regulations designed to cut down on the auto insurance fraud that is occurring because of the no-fault auto insurance system. They are not waiting for the State of Florida to fix the system.
The county now requires certain medical clinics to obtain a county license. Specifically, the clinics that make the majority of their income from treating people who were involved in automobile insurance accidents. It also includes the clinics that make the majority of their income from auto personal injury protection insurance claims.
The ordinance requires clinics to be open for business for a minimum of three days a week, between the hours of 9:00 A.M. And 5:00 P.M.. A physician must be present at the clinic at least three days a week, and for at least four hours a day. One physician cannot serve at more than five PIP medical clinic providers. The clinics have to see walk in patients, and make appointments. The license will cost a non-refundable fee of $500, and an annual fee of $1,500.
Image by Steve Lyon on Flickr