Two months to go: Florida PIP law 10 key changes for 2013 impact health care providers and insurers alike

Consider the 2012 PIP law changes from the perspective of health care providers treating auto injury patients in 2013. Some providers may see reduced payments. Massage therapists and acupuncturists are frozen out. Hospitals and most physician practice groups could actually benefit from limitations on other providers.

For insurers and health care providers alike, procedures will need to be modified. The effective date for most changes is January 1, 2013 - barely two months away. A summary of 10 key PIP law changes is presented below.

PIP reform analysis 2012: Only 2 changes likely to lower costs

Just two! That's the number of provisions of 2012 PIP law HB 119 that are predicted to have a material impact on reducing PIP loss costs and premiums. The key changes are the $2,500 cap on non-emergency treatment and the exclusion of massage therapy. Their combination is estimated to be as much as 96% of the new law's impact on cost savings.

These are some of the conclusions of Pinnacle Actuarial Resources, Inc. (Pinnacle), in its actuarial analysis of HB 119. Enacted in the 2012 Florida legislative session, HB 119 directed the Office of Insurance Regulation (OIR) to engage an independent actuary to calculate the savings expected from HB 119. OIR selected Pinnacle, which released its final report on August 20, 2012.

Citizens assessments reduced in last bill passed 2012 session

There's good news for Florida's property insurance market. It took all session, but at 11:30pm this evening the Florida Legislature approved a bill that reduces the regular assessments of Citizens Property Insurance Corp.

PIP reform passes in last hours of 2012 Florida session

Finally. . . at 9:20 pm this evening, PIP passed. The Florida Senate concurred with amended House language and passed strong PIP reform - a compromise version negotiated among House and Senate sponsors and the Governor's office.

The final language of HB 119 is currently only in amendment form at amendment number 941519. The House's summary of changes from the Senate bill is contained in a House Message Summary.

For more on PIP and other insurance bills passed by the Legislature, go to 2012 Key Insurance Bills tab.

This summary was prepared by Perry Cone and posted at TallyInsLaw.com.

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Legislature begins to pass insurance bills, final week 2012 session

The Florida Legislature finally passed its first two insurance bills on Wednesday, March 7. For an updated list of insurance bills passed by both houses, to be sent to the Governor, see updated 2012 Key Insurance Bills tab. The last day of the 2012 legislative session is Friday, March 9.

This summary was prepared by Perry Cone and posted at TallyInsLaw.com.

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Saturday surprise - Cat Fund in play last week 2012 session

In a surprise move on Saturday morning, a Senate committee attached a watered-down Cat Fund reform measure onto the Citizens assessment bill, SB 1346. The combined Citizens/Cat Fund bill is now ready for final consideration this coming week (last week of 2012 session).

Week 8, 2012; action shifts to Senate; one week to go

It’s finally here! The last week of Florida’s 2012 legislative session. No insurance bill has yet to pass both the House and Senate.

Seventeen bills have been passed by the House and are ready for Senate floor action. Some will pass, some will fail. Which way they fall by Friday, March 9th (end of session) is anyone’s guess right now.

Below is an update on three highly-controversial insurance measures (including PIP), followed by a summary of the quiet ones.

PIP renamed "MCC" in reform bill ready for full House following week 7, 2012

The House's controversial new coverage to reform PIP was renamed "Medical Care Coverage" (MCC), passed its final committee, and is ready for action in the full House.

The revised House bill, HB 119, retains the emergency care coverage that was part of the original bill and adds a carve-out of $1,500 for non-emergency care in a doctor's office within the first 72 hours of an accident.

Week 7, 2012 report - House continues to take lead

With two weeks left to go, if nothing else, give the House credit for making substantial progress on insurance legislation – even if the final outcome remains in doubt. During week 7 of Florida’s 2012 legislative session, an additional seven bills were passed by the full House and four more were approved by their last House committee.

This brings the total to fourteen measures that have passed the House. Only one of these bills, however, has been approved by final Senate committee action, and none has come to a vote on the Senate floor. A few are scheduled for Senate committee hearings during week 8.

Below is a summary of week 7 action:

Cat Fund reform sails through first committee, future cloudy

After being dormant most of this session – and seemingly dead – a bill intended to “right size” the Florida Hurricane Catastrophe Fund received its first formal approval in week 6 of the 2012 Florida legislative session.

SB1372, the bill voted out of the Senate Banking and Insurance Committee, is aggressive. Most of its provisions, however, are phased in over a number of years. Here is a summary of the current Senate bill:

Week 6, 2012 - nine insurance bills move in House

This past week saw a flurry of activity on insurance legislation in the Florida House and virtually none in the Senate. Nine bill were passed in the House or approved in their last House committee during week 6.

This brings to sixteen for the session, the number of bills that have passed the House or all required House committees. With one exception, however, none are ready for full Senate action.

PIP week 6, 2012 – not quiet, not moving

Neither the House nor the Senate moved on PIP reform this past week (week 6 of the 2012 Florida legislative session). But PIP wasn't out of sight or mind either.

Governor Scott, CFO Atwater, and support groups kept the issue alive, as reflected below:

Mid-session report - week 5, 2012

The middle of week 5 marked the mid-point of Florida’s 2012 legislative session. Of the 30 or so insurance measures I have been following, 11 inched forward last week.

There are now four weeks left to go, with the session scheduled to end on March 9, 2012. Below is a combined week 5 update and mid-term report on a select dozen insurance matters – four of the more controversial issues still kicking around, four bills that seem poised for passage (eventually), and four that appear dead for the session.

Passed House or ready for House vote, end of week 5, 2012

Seven insurance bills have either been passed by the Florida House of Representatives or approved by all required House committees, as of the end of week 5, 2012 Florida legislative session. All are waiting for additional committee action in the Senate.

The following measures have passed the House as of the end of week 5:

PIP, Citizens, aliens highlight Week 4, 2012 session

PIP and Citizens reform were at the top of measures that advanced during week 4 of Florida's 2012 legislative session. Alien insurers, annuities, commercial lines transfers, and other matters also received favorable votes. Here is a summary of the past week's action in Tallahassee:

PIP bill clears first Florida Senate hurdle in 2012

Not enough for Florida PIP-reform advocates, but moving forward – that's how I would sum up the bill approved in its first Senate committee vote on Friday. The Senate bill targets fraud, eliminates reimbursement of two widely used treatments, and changes the PIP statute in several other respects highlighted below.

Alien insurers measure advances; life & annuities added

Alien insurers that issue policies solely to non-residents of the United States would have more opportunities to be exempt from Florida's certificate-of-authority requirement, under a measure receiving its first approvals in House and Senate committees in week 4 of the 2012 Florida legislative session. Under the Senate bill (more current than the House version), Section 624.402, Florida Statutes, would be amended to:

Week 3 insurance recap (2012 session): bad faith fails; but advancement on large list, including PIP, Citizens, title insurance, warranty, Medicare, commercial, property, and motor vehicle

With one very notable exception, this was a good week for insurance legislation in Tallahassee, Florida. Below is a summary of committee action on 9 important and minor measures during week 3 (2012 legislative session).

Bad faith reform defeated: likely dead for 2012 Florida legislative session

A very streamlined version of insurance "bad faith" reform failed to pass the House Civil Justice Subcommittee this week and is presumed to be dead for the 2012 Florida legislative session.

Unlike last year's complicated bill, the 2012 version would simply subject common law bad-faith (defense of third party liability claims) to the existing "civil remedy notice" protocol of section 624.155, Florida Statutes. The bill provides for a release of the insured in certain circumstances, but makes no other major changes to the statute.

Insurance "hodgepodge" bill approved by House subcommittee, week 3 of 2012 session

Over a dozen miscellaneous changes to the Insurance Code were approved in the first committee hearing on HB 1101. On Tuesday, January 24, the House Insurance & Banking Committee voted favorably on HB 1101 which contains revisions to property insurance, motor vehicle insurance, travel insurance, adjuster and agent license exams, commercial surplus lines disclosure, and reinsurance summary statements. A committee hearing has not yet been scheduled on the Senate companion bill, SB 1620.

A summary of the current House bill is provided below.