Special Session C Update: Personal Injury Protection

Florida Legislative insurance committees held Personal Injury Protection (“PIP”) workshops today in preparation for Special Session 2007 C, which begins tomorrow, October 3, 2007.  Each Committee proceding is detailed below.

Senate Banking and Insurance Committee

Committee Staff Director Brian Deffenbaugh began today’s Senate Banking and Insurance Committee meeting by providing an overview of Senate Bill 40 C. 

Essentially, this bill reenacts the PIP statutes and provides for other changes to the now-expired law, including the elimination of deductibles, various fee schedules, included limiting hospitals to 200% of Medicare Part A, and consolidation of claims. 

After an explanation of the SB 40C, Chairman Bill Posey (R- Rockledge) opened the floor for Committee questions.  Significant discussion ensued:

Senator Mike Bennett (R-Bradenton) stated that the fee schedule was insufficient to the hospitals. 

Senator Durell Peaden (R-Crestview) indicated that the bill needed a peer review provision. 

Senator Dave Aronberg (D-Greenacres) expressed concerns with the elimination of deductibles and that the bill does not include sufficient fraud enforcement. 

Senator J.D. Alexander (R-Lake Wales) expressed concern that the provider fee schedule is not uniform and that there are not sufficient provider utilization controls. 

Senator Posey spoke on behalf of the bill and provided a brief history of why PIP was enacted, stating that its purpose was to reduce lawsuits, and that for Florida to revert to a tort system would re-ignite a litigious climate.

Approximately 15 minutes of public testimony followed the Committee discussion.  Several insurance companies (Progressive, All-State, State Farm) and insurance trade associations (Florida Property and Casualty Association, Florida Property and Casualty Insurers of America) spoke in opposition to the bill as currently written.  Many healthcare providers, including the Florida Hospital Association and Florida Medical Association, spoke in favor of the legislation.

The meeting adjourned immediately following the public testimony.

 

House Insurance Committee/Jobs and Entrepreneurship Council

The House Insurance Committee and Jobs and Entrepreneurship Council met jointly to discuss House Bill 13 C, which is considered to be the House version of proposed PIP legislatiion. 

Council Chairman Ron Reagan (R-Sarasota) recognized Representative Ellyn Bogdanoff (R- Fort Lauderdale) to explain the bill.  Substantially similar to SB 40 C, it was noted that the HB 13C contains a fee schedule and provisions for attorney fee reform. 

During the workshop, several Representatives discussed the policy ramifications of the bill, including its impact on consumers and the procedural problems that the bill creates.  However, many interested parties disputed the effectiveness of those provisions. 

Following the members discussion, there was approximately 30 minutes of public testimony.  The same interested parties that spoke in the Senate workshop also presented their positions to the House Committee.

Chairman Reagan concluded the workshop by noting that HB 13 C will be discussed in the Insurance Committee at 3:45 p.m. on the first day of Special Session C (October 3, 2007). 

Special Session C Block calendars for both the House and Senate are attached for your review 

We will continue to provide you with additional updates as these issues move through the Special Session, which is scheduled to conclude on October 12, 2007.  . 

Please feel free to contact this office should you have any questions regarding the above matters.