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Insurers Get Green Light to Pay Less Than Billed Charges in Florida PIP Cases

April 29, 2024

The Florida Supreme Court has given auto insurers more flexibility in reducing payments for medical services under the state’s no-fault auto insurance law and may have finally put to rest years of questions about the much-debated statute.

In answering a certified question from a federal appeals court, the Florida justices said that the no-fault law does not force insurers to choose between paying 80% of the maximum reimbursement allowed by Medicare or paying the full amount of the charges submitted by a medical provider. The insurer may, if the policy gives notice, choose to pay 80% of the charged amount, even if that amount is less than the maximum, the court decided.

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