A way forward on no-fault
By A TIMES EDITORIAL
Published September 29, 2007
Like most things Florida lawmakers do these days, the latest compromise over no-fault automobile insurance has emerged decidedly late and through secret negotiation. But it does represent the last opportunity to protect injured motorists and hospital emergency rooms as the current law expires, and lawmakers shouldn't meet next week without considering it.
The draft bill negotiated by Rep. Ellyn Bogdanoff, R-Fort Lauderdale, and Sen. Bill Posey, R-Rockledge, at least takes a few steps forward in dealing with some of the complaints about fraud and overbilling. It would combat unscrupulous injury treatment clinics by requiring they be owned or managed by a doctor. It would put emergency rooms at the front of the line for payment of services under the $10,000 "personal injury protection" policies, and it would cap other hospital services to 200 percent of what Medicare pays.
The bill does not limit attorneys' fees, as Senate negotiators have wanted, but it would require all PIP lawsuits to go through mediation first and force some types of suits to be consolidated.
This tenuous deal may or may amount to a permanent solution for PIP, but Senate President Ken Pruitt is currently standing in the way. On Friday, Pruitt refused to add the issue to Wednesday's special session only then to release a statement lauding Posey for a "masterful job" on the PIP agreement. Masterful but not worthy of consideration?
The House responded by urging Gov. Charlie Crist to add PIP to the agenda. Crist, who has opposed the elimination of PIP and helped to bring about the compromise, should oblige. The law requiring that every motorist carry PIP insurance expires on Monday, and lawmakers will need to act swiftly if they want reduce confusion among consumers.
Crist has voiced concerns about the elimination of no-fault insurance, noting the potential financial impact on charity hospitals that would be forced to treat accident victims who may have no health insurance. Hospitals have projected they would lose $140-million a year through uncompensated care.
Reinstating PIP will help cushion hospital emergency rooms from such an impact, but it also true that the $10,000 policy limit has not changed in 36 years. In today's medical environment, that only scratches the surface. The average billing for accident victims who end up staying in the hospital is more than $54,000. Remember, hospital emergency rooms, unlike chiropractic clinics or other providers, are required to provide treatment.
There may ultimately be a better solution than the bill Bogdanoff and Posey are advancing. There certainly is a better method than secret negotiation. But time is of the essence, and lawmakers need to keep PIP alive.