Governor Murphy signs Bill allowing recovery of medical expenses above PIP Limits

New Jersey Gov. Phil Murphy recently signed legislation allowing recovery of medical expenses incurred due to injuries suffered in motor vehicle accidents above PIP limits. This signing of the statute, for all intents and purposes, overturns the New Jersey Supreme Court's March 2019 holding in Haines v. Taft, which set forth the principal that an injured party, in a motor vehicle accident, was precluded from recovery medical expenses in excess of his her PIP limits.

The Supreme Court overturned the Appellate Division which allowed for the the recovery of unreimbursed expenses beyond the PIP limit, and up to $250,000.00, which is the standard default PIP limits in New Jersey policies. Insurers are also required to provide options for reduced PIP coverage, presumably for lower premiums, with limits of $150,000, $75,000, $50,000 or $15,000 per person per accident. The default limits are in effect if the insured does not choose a lower limit.

Governor Murphy signed Senate bills 2432 and 3963 in response to the Haines ruling. Senate bill 2432 overturned the holding in Haines. Senate Bill 3963 omitted a provision in 2432, that would have allowed for the recovery of all unpaid or uncovered expenses through PIP coverage, even amounts paid through health insurance, for those individuals who select such an option. Senate Bill 3963 also sets forth that unpaid or unreimbursed expenses, in excess of the injured party's PIP limits, must be fee scheduled. Before the signing of Senate Bill 3963, expenses beyond the applicable PIP limits would not be fee scheduled, but rather within the trial judge's discretion of what is considered reasonable and necessary.

This is an important development in New Jersey PIP law. Contact us to do discuss your motor vehicle accident, and how these new statutes affect your personal injury case.