Florida insurance commissioner says Senate PIP legislation will worsen problems

The Senate’s PIP fix might not be a fix at all – and it could bankrupt some auto insurers, says Insurance Commissioner Kevin McCarty.

McCarty has long been a fan of the House’s version of personal injury protection reform, but now he’s openly criticizing the Senate’s approach.

The Senate sent its no-fault car insurance reform package back to the House Wednesday. The Senate plan doesn’t cap attorney fees, allows judges to award fee multipliers in complex cases and permits chiropractors to perform initial evaluations for people injured in auto accidents.

All of that is problematic, McCarty said.

“There are some provisions in the Senate bill that we fear are going to exacerbate the problem,” he said.

Putting chiropractors on the front line, as the Senate does, is wrong, McCarty said. The House’s version doesn’t include chiropractors at all, though leaders said they are open to adding chiropractors to the list of medical providers that can be referred to for follow-up care.

Sen. Joe Negron, R-Stuart, the Senate’s point person on PIP, says McCarty's analysis is incorrect. Senators approved several provisions that will reduce premiums, including an amendment that requires insurance companies to either lower rates by 25 percent or justify why PIP costs haven’t changed, he said.

"The Senate PIP bill will result in a minimum 25 percent reduction in insurance rates,” Negron said. “By eliminating the clinic licensure loophole and cracking down on overutilization, the Senate proposal goes after fraud but still ensures that legitimate medical providers are paid in a timely manner."

There is some good in the Senate plan, McCarty said, such as removing acupuncture and massage therapy from the list of covered treatments and anti-fraud provisions. But he doesn't think it's enough.

McCarty’s opinions on the Senate proposal are mirrored by Gov. Rick Scott and Put the Brakes on Accident Fraud, a coalition of insurance, business and law-enforcement groups that supports the House’s approach. The public relations firm representing the coalition set up McCarty’s interview with the Times/Herald.

McCarty said his aim isn’t to bash the Senate but to encourage the upper chamber to move closer to the House’s position as they pass proposals back and forth. If legislators can’t reach an agreement by Friday, there is a chance they will be called back for a special session on PIP.

“I don’t mean to be critical, I just tell it the way it is,” McCarty said. “Some of the amendments that have been added undermine any potential for cost savings, and I am concerned about that.”

This story was originally published March 8, 2012 at 10:22 AM with the headline "Florida insurance commissioner says Senate PIP legislation will worsen problems."