Implementation of PIP Law Under Review
The Office of Insurance Regulation (OIR) and other state agencies are considering the implementation steps needed for the recently passed Personal Injury Protection (PIP) reform bill (HB 119). One of the key upcoming action steps is for insurers to make their initial rate filings responding to cost savings resulting from the new law. The filing deadline is October 1, 2012. The OIR has indicated the effective date of the rate filings should be January 1, 2013. This will allow for submission of the required filings by insurers and the requisite review period by the OIR. The next filing deadline will be the following year and will apply to policies to be issued or renewed after January 1, 2014. The Office of Insurance Regulation’s upcoming report on the PIP law is expected to affirm that the impact of the PIP reforms will be unique to individual insurers and the rate impacts by insurer will vary.
Insurers also will need to consider whether their forms reference the use of the Medicaid fee schedule. A court has ruled the use of this is permissive, but not mandatory, and therefore insurers need to refer to the fee schedule in their policies if they intend to apply it in their forms.
The PIP reform law contains many nuances, and insurers already are identifying “glitches” or inconsistencies in the law’s dates and deadlines. Insurers should review the new law carefully and plan ahead as they implement it.