Legislation championed by Rep. Jim Boyd of Bradenton gained momentum over the past week -- and deservedly so. With Florida serving as ground zero for staged vehicle accidents, bogus injuries and auto insurance fraud for several years now, the Legislature has tried but failed to adopt remedies. This session looks like the game-changer.
Boyd’s measure passed through two House subcommittees last week. His fellow Bradenton Republican, Sen. Mike Bennett, is sponsoring similar legislation in the Senate. Other bills in both chambers target this fraud as well.
The state has required licensed drivers to obtain personal injury protection insurance since 1972. The insurer would pay up to $10,000 to cover medical bills and lost pay after an automobile accident, regardless of fault. Only a dozen states require such PIP insurance. Boyd’s bill, HB 119, would replace PIP with a new no-fault motor vehicle insurance system called Emergency Care Coverage.
Even though the number of vehicle accidents has declined over the past seven years, PIP claims have soared 70 percent since 2008. The state estimates drivers pay an extra $900 million in annual premiums to cover fraud, and even then insurers lose money on PIP.
The Tampa Bay region is particularly terrible, one of the worst places in the nation for accident fraud. Statewide, most insurance companies have raised PIP rates by 50 percent or more while Tampa policyholders got socked with an 81 percent hike between 2008-2010.
Boyd’s bill strives to contain fraud by requiring that drivers and passengers seek treatment within 72 hours of a crash at a hospital emergency room, and bars chiropractors and massage therapists from performing follow-up care covered by insurance. These provisions are aimed at eliminating claims filed weeks later by unscrupulous health-care providers that bill insurers for fake treatments and pay kickbacks to purported accident victims. The measure also targets diagnostic tests deemed not medically necessary, and caps attorney’s fees.
We take exception with the strict requirement of medical care at a hospital, which could lead to overcrowded emergency rooms and expensive care for patients with minor injuries, if any at all. At the very least, ambulatory accident victims should be allowed to visit their primary care physician and within a more reasonable amount of time.
Bennett’s bill, SB 254, provides medical care options. It allows insurance companies to vet doctors and clinics and then compile a list of preferred providers; the insurer would provide a premium discount to policyholders who seek medical care from one of those providers. This is an improvement over HB 119.
The drumbeat for PIP reform took center stage on Wednesday at a Tallahassee rally led by Gov. Rick Scott and attended by about 100 people. Proponents also include the Florida Chamber of Commerce, Associated Industries of Florida, other business organizations, law enforcement, nonpartisan public policy think tanks and the insurance industry.
This fraud has cost Florida vehicle owners too much money for too many years. Boyd and Bennett should huddle and blend the best of both bills into formidable reform certain to mollify critics and earn approval in both chambers.
