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Senate, House Close On No-Fault

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By DAVID ROYSE The Associated Press

Published: September 23, 2007

TALLAHASSEE - House and Senate negotiators reached a general agreement to extend the state's no-fault car insurance law rather than letting it expire as scheduled Oct. 1, key members of both chambers said.

It remains unclear whether House and Senate leaders were satisfied with the agreement. A spokeswoman for Senate President Ken Pruitt, R-Port St. Lucie, said that though lawmakers working on the issue agreed Friday on what a bill would say, no agreement to call legislators back to Tallahassee to vote on the proposal had been reached.

The requirement that Florida drivers buy personal injury protection insurance - PIP coverage - has been debated heavily. Critics say the system is so rife with fraud it should be scrapped. The law provides up to $10,000 in coverage for medical bills, regardless of who is at fault in an accident.

But proponents of keeping the requirement say letting it expire will lead to more uninsured people whose hospital care will not be paid for, leaving medical providers on the hook for that coverage.

Sen. Bill Posey, R-Rockledge, chief negotiator on the issue in the Senate, said lawmakers working on the issue agreed on language for a bill that would extend the PIP requirement indefinitely but make revisions to combat fraud.

Fee Schedule

The main fraud-fighting element in the bill would be a fee schedule for what insurance would pay for various medical procedures, Posey said. 'That's the prime ingredient for taking the fraud out of PIP,' he said.

In the House, Rep. Ellyn Bogdanoff, R-Fort Lauderdale, has taken the lead on the issue. She did not immediately return a call seeking comment.

But Rep. Adam Hasner, R-Delray Beach, who has been involved in talks about the plan, confirmed the House and Senate worked out a bill for lawmakers to consider before the law expires next month.

'We've never intended for PIP to sunset,' Hasner said. 'We've always said that we wanted to make it better for consumers and add protections ... and I think we've done that with what has emerged.'

House Speaker Marco Rubio, R-Miami, also wants to see the system continue. Rubio spokeswoman Jill Chamberlin said he was 'optimistic that the outcome will be no-fault health insurance for Florida motorists that is pro-consumer and anti-fraud.'

Gov. Charlie Crist said last week that legislators and officials in his office working on the issue had gotten 'much closer' to a deal. He has said he would like an agreement to be finished before the law expires. He 'has been briefed and will take the weekend to consider all of the recommendations that have been agreed upon,' Crist spokeswoman Erin Isaac said.

Insurers Push To End PIP

Some of Florida's largest auto insurers, including State Farm and Allstate, have pushed lawmakers to let the no-fault system expire, noting their customers would see lower rates if it does because of a reduction in fraud losses.

A group representing businesses that want PIP to end, Floridians for Lower Insurance Costs, said Friday it was skeptical of any deal that allows the system to continue. The group said that if the system stays, it needs several changes that do not appear to be part of the deal, such as a limit on attorney fees.

'This proposal doesn't fix anything; it makes the problems worse and more expensive for drivers,' said Allison North Jones, a spokeswoman for the group.

Lawmakers are to return to Tallahassee Oct. 3 through Oct. 12 for a special session in which they must cut more than $1 billion from the state budget. If they want to prevent PIP from expiring, they would have to return before then.

So far, there's no decision to do that, though such a decision could be made this week, Pruitt spokeswoman Kathy Mears said.

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