One of the last bills signed by Gov. Rick Scott out of the 2012 legislative session was among his and Chief Financial Officer Jeff Atwaters primary targets in the session: slowing the rapid rise of the most affordable auto insurance in Florida.
Scott, in a signing ceremony Friday at the Florida State College, Law Enforcement Training/Criminal Justice Center in Jacksonville, placed his name to HB 119, a final-night-of-the-session, Senate-dominated revamping of the no-fault personal injury protection coverage.
The bill has been derided as an insurance agency bailout by Sen. Dennis Jones, R-Seminole, because of the House requirement for a $2,500 cap on treatment, despite the supposedly low-cost insurance program providing $10,000 in coverage.
PIP reform has been cheered by two of the states biggest business advocates, the Florida Chamber of Commerce and Associated Industries of Florida.
Today will mark the signage of significant personal injury protection reform into law, Tom Feenery, AIF president and CEO, stated in a release. Meaningful PIP reform has eluded the Legislature for years, and plagued consumers and Florida businesses with millions in fraudulent claims.
Scott has repeatedly said fraud has been a key reason the no-fault premiums have grown $1 billion and would continue to escalate at 30 percent a year without reform.
Growing up in a family without a lot of money, I truly understand the value of the hard-earned dollar for Florida families, Scott stated in a release Friday.
By helping reduce fraudulent auto accident claims, this legislation will benefit the pocketbooks of every Florida family who drives an automobile. I am glad to do my part in keeping the cost of living low in Florida, and I will continue to work to find ways to do so.
The insurance bill was a compromise that heavily favored the Senate proposal by placing no-cap attorney fees, giving accident victims two weeks to seek medical help, allowing chiropractors to treat patients, and imposing a prohibition on allowing massage therapists and acupuncturists to be eligible for PIP claims.
With the signing of this bill today, Florida will release the chokehold that fraud has on Floridas insurance consumers, Atwater stated.
I commend Governor Scott for signing this important piece of legislation and for his tireless work to ensure that we pass significant reforms to protect our fellow Floridians."
Continued Atwater, The road to reform was a long and challenging one. Representative Jim Boyd, R-Bradenton, and Senator Joe Negron, R-Stuart, were both vital to the success of these reforms. I congratulate these leaders and the entire Florida Legislature today for recognizing that consumers no longer can afford inaction on PIP. Im eager to start seeing the positive impacts of this bill in the form of future rate relief for Floridas consumers.
Also under the law, effective July 1:
-- Insurers would have 90 days to pay claims and an organization within the Division of Insurance Fraud would be created to combat motor vehicle insurance fraud.
-- Health-care practitioners found guilty of insurance fraud would have their licenses revoked for five years and be banned from seeking PIP reimbursement for a decade.
Groups such as the Florida Consumer Action Network, Florida Medical Association, Florida Justice Association, Florida Chiropractic Association, Florida Osteopathic Medical Association and the Florida Public Interest Research Group had argued that the House version of the reform bill, which was initially supported by Scott, would be a boon to insurance companies.
Bill Newton, executive director of the Tampa-based Florida Consumer Action Network, called the signing a "political victory" for Scott but not a victory for consumers, as the law will shift the burden of accidents to the victims.
As a constant advocate for consumers in Florida, the Florida Consumer Action Network has watched many legislative sessions come and go without meaningful PIP reform. Today, as the governor signs the final bills of the 2012 session, it appears another year will pass without real PIP reform to protect consumers.
While the governor signed HB 119 -- and called it a PIP reform package -- the consumers of our state are unlikely to see any relief, but they will lose benefits, Newton stated. HB 119 will allow insurance companies to reduce benefits by using arduous restrictions on consumers -- and theres no guarantee consumers premiums will decrease. If an accident victim isnt treated for an emergency medical condition at a hospital, then the victims $10,000 coverage will be reduced to $2,500, and the limited coverage will only be available for two weeks after an accident. He says this will magically reduce fraud, but it is hard to see how it works.
In fact, accident injury costs will shift to health insurance premiums and indigent care programs, while auto insurance companies pay less in claims. It is possible consumers will pay more, not less, because of this bill.
The state Office of the Insurance Consumer Advocate, which backed the reform effort, has estimated that PIP losses have caused rates to grow 81 percent since 2008, representing a $1.4 billion hike.
Reach Jim Turner at jturner@sunshinestatenews.com or at (772) 215-9889.
