In the PIP world, insurance companies invest any money that they owe medical providers for outstanding medical bills. This can amount to millions of dollars in savings to insurance companies at a medical provider’s expense. Pursuant to FS §627.736(4)(d), an insurance company owes interest on medical bills that an insurance company underpays to a medical provider. FS §627.736(4)(d) was designed to even an uneven and unfair playing field that insurance companies have when holding money from medical providers. Medical providers should always make sure that they receive interest along with their medical bills.
For pre-tort reform cases, attorney’s fees are allowed for collecting interest under FS §627.736(4)(d) when an insurance company underpays medical bills and interest; a lawsuit is filed and an insurance company pays medical bills and interest after the suit was filed. Let us say an insurance company receives a pre-suit demand letter and a pre-tort reform case and pays medical bills within 30 days of receiving the letter but fails to pay interest. Can a medical provider’s attorney receive attorney’s fees on a pre-tort reform interest-only lawsuit? District Courts of Appeal disagree with each other on this issue. So, depending on which of the 6 Districts you are in, will depend on whether a medical provider’s lawyer can obtain attorney’s fees in a pre-tort reform lawsuit involving an insurance company underpaying interest only.
For post-tort reform cases, medical providers should still insist on receiving interest. I have written articles in this magazine on how to litigate post-tort reform cases and still receive attorney’s fees on outstanding medical bills and interest and please consult those articles for that issue.
Many times insurance companies will ask me to “waive interest” when settling a PIP claim. I never agree to do that because interest belongs to my client and my client deserves that money that an insurance company has withheld from it. Once I tell the insurance company that my client will not “waive interest” they cave in and pay medical bills and interest. And make sure that you double check that the insurance company pays you the correct amount of interest, because in about half of my cases, insurance companies underpay interest and I have to chase them up for additional amounts.
