A personal injury protection bill patterned after Florida's workers' compensation program ran into a buzz saw of opposition at a jam-packed committee room Wednesday, but emerged relatively unscathed.
Soaring costs for mandatory motor vehicle PIP insurance are driving the demand for reform, said Rep. Jim Boyd, sponsor of House Bill 119.
"Florida has a billion-dollar [PIP] fraud industry," the Bradenton Republican said. "The number of drivers is flat and accidents are down, but claim values are up and PIP premiums are up 66 percent."
With some projections forecasting price increases of as much as 30 percent this year, the House Civil Justice Subcommittee approved Boyd's bill after more than two hours of testimony and debate.
To curb costs, HB 119 sidelines so-called PIP clinics by mandating that accident victims report to a hospital emergency room or a hospital-owned clinic within 72 hours for treatment.
A long-form crash report must be completed at accident scenes to ascertain exactly who was involved.
The bill expands insurers' authority to conduct wide-ranging examinations of physicians and staff under oath -- a provision that opponents branded a "fishing expedition."
Paul Lambert, of the Florida Chiropractic Association, labeled the 109-page HB 119 "an empty box that says minor injuries won't be covered and you can't select a doctor of your choice."
But Monte Stevens, of the state Office of Insurance Regulation, said more accountability is needed.
"Abuse and bad actors are driving up rates for everyone," Stevens said.
The Coalition for Auto-Insurance Reform reported that 28.4 cents of each PIP premium dollar go to attorneys while only 14.5 cents go toward medical bills, lost wages and other economic loss. The remainder goes to non-economic loss (16.9 cents) and "fraudulent and excessive claims" (12.6 cents), the coalition said.
Boyd cited other statistics showing that some Florida motorists are paying as much as $15,000 for the required minimum $10,000 PIP coverage.
"This bill puts dollars back in pockets of Floridians, not in the pockets of fraudsters," Boyd testified.
Stevens likened the proposed PIP overhaul to the state's workers' comp reforms, which have reduced costs by 60 percent over the past seven years. But Stevens said he could not estimate savings from HR 119, since no state has installed such a program.
Rep. Matt Gaetz, R-Shalimar, questioned the cost-benefit of funneling all PIP injury cases to emergency rooms, which he called "the most costly form of care."
Gaetz, an attorney, also complained that HB 119 "erodes" the right to pursue class-action suits against insurers for "systematic underpayment of claims."
In voting against the measure, another attorney, Rep. Darren Soto, D-Orlando, said, "We're driving blind with this bill."
While a parade of critics from the audience called his measure "anti-consumer, anti-doctor and pro-insurance," Boyd maintained that the goal is to "eliminate overbilling."
"We're not changing who's covered," he said.
Gov. Rick Scott calls PIP fraud a "billion-dollar tax" on motorists, and the Florida Chamber of Commerce supports Boyd's reform bill. (For video of Scott, Chief Financial Officer Jeff Atwater and business leaders discussing the bill, see here.)
But the Florida Medical Association opposes HB 119.
Making illegal conduct more illegal and imposing burdensome new requirements on the legitimate physicians who treat auto accident patients is not the way to stop PIP fraud and abuse," said Rebecca OHara, FMA vice president of governmental affairs.
"The FMA believes that if we focus on more effectively targeting and punishing those who break the laws, well restore order to the PIP system.
Florida Hospital Association general counsel Bill Bell said, "We support continuation of a PIP benefit for hospitals and our physicians."
Though the bill limits attorneys' fees, the Florida Bar has "no position on PIP," said counsel Paul Hill.
Contact Kenric Ward at kward@sunshinestatenews.com or at (772) 801-5341.
