Crist Works to Salvage No-Fault
Beatrice Garcia
Miami Herald
Sep 15, 2007
With less than three weeks before Florida's controversial no-fault auto insurance law expires, talks are continuing in Tallahassee to craft a reform that could win broad support.
If such a solution wins consensus among the leadership in the state Senate and House of Representatives, it could have a good chance of being considered during the special session next month to discuss budget cuts.
More than 40 representatives for healthcare providers, attorneys, insurers and agents spent seven hours Wednesday huddled with Gov. Charlie Crist's staff to hash out possible reforms and find a means to extend the law beyond its Oct. 1 expiration date.
Measures to contain medical costs, fee schedules and utilization controls are being considered. Possible legal reforms, including some that might make it easier for insurers to contest claims, are also on the table.
Another meeting is planned for Monday.
The no-fault law requires drivers to buy $10,000 of personal injury protection, or PIP, which pays their medical bills after an auto accident. PIP's critics contend the current system breeds fraud and endorses excessive billing by health providers.
Supporters say PIP benefits pay for medical care upfront, regardless of who caused an accident, so victims don't have to worry about going to court to sue. Having some medical care after an accident is crucial, especially when many consumers don't have health insurance, they say.
ADDITIONAL BENEFITS
The no-fault law also provides lost wage and funeral benefits for accident victims.
The governor and CFO Alex Sink support extending no-fault. But Crist is adamant there be consensus on a no-fault reform bill before he calls lawmakers back to Tallahassee to debate it.
Legislators such as Rep. Julio Robaina, R-Miami, and House Democrats including Rep. Rick Kriseman, D-St. Petersburg, are bombarding Crist with letters calling for the law to be extended at least for another year so they can take another crack at making significant changes.
But several lawmakers have been working on possible solutions.
Sen. Bill Posey's draft proposal, released Friday, includes a fee schedule that would pay for hospital and emergency services at 200 percent of Medicare's current payments.
Posey, head of the Senate Banking and Insurance Committee, includes a provision that would set aside $5,000 of the $10,000 PIP coverage to pay for doctors who provide in-hospital care, especially in emergency rooms where there is a physician shortage.
"There's nothing in my bill that will offend anyone," said Posey, R-Rockledge, referring to the groups that have a stake in the no-fault battle. "But the consumer gets a fair shake."
Other legislators have considered bills that would require drivers to buy bodily injury liability coverage, which pays medical bills for accident victims in the other car, if you're at fault.
Posey said he won't support any bill that makes bodily injury liability coverage mandatory because he believes it would add to consumers' insurance costs. That could lead to even more uninsured drivers.
JUST IN CASE. . .
In fact, insurers have already started to bump up bodily injury liability rates, anticipating more claims in a world without no-fault.
Many insurers, agents and legislators hope to figure out a way to keep no-fault's current requirements on mandated insurance coverage that insurers report to regulators as soon as drivers' insurance coverage lapses or is cancelled. Their drivers licenses are revoked until insurance is restored.
Yet, some insurers, such as State Farm, still are willing to let no-fault expire Oct. 1, let drivers buy the coverage they need and see if Florida can function with a tort system.