Senate approves changes to PIP insurance claims, billing and fraud enforcement in House Bill 627

House Bill 627, a package of changes to Kentucky's personal-injury protection (PIP) insurance provisions, passed the Senate on March 27 following floor debate and amendments.

Senator from Madison explained the committee substitute and floor discussions. The bill subjects PIP claims to the workers'-compensation fee schedule as a reimbursement floor (the committee substitute sets that schedule as a floor), requires providers to submit PIP bills within 180 days of treatment, grants the attorney general concurrent jurisdiction with county and commonwealth attorneys to prosecute insurance fraud, prohibits balance billing of consumers for PIP, and increases certain benefit amounts (for example, increasing funeral benefits and weekly wage replacement caps as described on the floor).

Sponsors framed the measure as a bipartisan compromise intended to curb excessive billing practices that have reduced the value of PIP benefits and to provide more protections to consumers. Supporters said several industry groups and professional associations (including the Kentucky Justice Association, Kentucky Chiropractic Association and Kentucky Physical Therapy Association) did not oppose the current compromise. Opponents argued for continued refinement but acknowledged progress toward reducing incentives for fraud.

The clerk recorded final passage after roll call. The bill includes numerous procedural and fee-schedule provisions that will require administrative follow-up and rulemaking.