Personal injury protection, or PIP for short, is part of auto insurance policies designed to pay for medical expenses due to motor vehicle accidents. In the state of New Jersey, the maximum benefit amount equals $250,000, which attracts an abundance of fraudulent claims. Recent changes to the PIP system have been implemented in hopes to combat fraud and keep premiums from rising.
Changes to the NJ PIP system are as follows, according to an article on bllawnj.com:
Compensation: “The new rules place a cap on the amount of reimbursement that someone can receive for certain medical procedures. By changing the price codes, the amount that will be paid out for about 2,500 healthcare procedures – including medical treatment for spinal injuries – will significantly decrease.”
Arbitration: “Under the new law, the amount that plaintiffs’ attorneys can be reimbursed for their services will also be reduced. In addition, there will be no hearings for cases where the claims are below $1,000. If the insurance company denies the claim, the insurer may also be required to pay the medical provider’s legal fees.”
Surgery: “For those who sustain spinal injuries during an accident, the new PIP rules will prevent them from being compensated if they receive treatment from an ambulatory surgical center.”
What are your thoughts on the New Jersey PIP changes?