FOR IMMEDIATE RELEASE
Aug. 22, 2007
Hospitals Applaud Speaker Marco Rubio and Rep. Ellyn Bogdanoff for Latest Proposal on No-Fault Insurance
Tallahassee, FL - The Florida Hospital Association (FHA) and the Safety Net Hospital Alliance of Florida applaud the efforts of Rep. Ellyn Bogdanoff and House Speaker Marco Rubio in addressing the impending sunset of Florida's mandatory no-fault motor-vehicle insurance. The repeal of this crucial insurance protection for motorists sends a dangerous message to all Floridians and the millions who visit our state each year.
"We thank Rep. Bogdanoff and Speaker Rubio for their leadership in recognizing the critical importance for continuing no-fault insurance in Florida," said Wayne NeSmith, FHA President. "As we peel back the layers of no-fault insurance, we are quickly realizing that the impact of its sunset go well beyond the $350 million loss to hospitals and health insurers. Our court system, law enforcement officers, fire and EMS personnel, rental car companies, Medicaid budget, and many other organizations and businesses will be negatively affected by the elimination of no-fault insurance," said NeSmith.
FHA and the Safety Net Hospital Alliance are leaders of the Coalition to Protect Florida's Drivers. The Coalition has called on Governor Charlie Crist, Senate President Ken Pruitt, and House Speaker Rubio to add the sunset of no-fault insurance to the September special session agenda. The diverse Coalition includes Florida's largest health insurer, a major auto insurer, safety officials, emergency care providers, first responders, and a wide array of medical professionals.
During the regular session, under the leadership of Senate President Pruitt and Senator Bill Posey, the Florida Senate passed an extension of no-fault insurance which included an expansion of anti-fraud measures. Now with the release of the House proposal, we look forward to the Senate's special session version for continuing no-fault insurance and earnest negotiations and action during the September special session over the future of protecting Florida's drivers.
Some four million drivers currently carry ONLY the state-mandated minimum Personal Injury Protection (PIP) insurance and P roperty D amage (PD) liability, according to the Florida Department of Highway Safety and Motor Vehicles (DHSMV).
However, if the Legislature fails to act and allows the state's no-fault insurance to sunset, there will be mass confusion over the requirement for drivers to carry PD coverage. That's because D H SMV admitted this week that while it appears drivers would be required to carry PD coverage, there re mains no authority in state law for the department to enforce this coverage. Thus, drivers apparently won't be required to show proof that they carry any insurance coverage when they register a vehicle.
The Coalition believes this lack of enforcement authority creates a dangerous driving environment in Florida, and must be addressed in the special session. This is coupled with the glaring fact that Florida will rank near the bottom of all states in terms of the minimum auto insurance it requires of drivers. Florida will be in the questionable position of requiring drivers to carry insurance protecting property but not people. Simply stated, there remains no sensible public policy justification for requiring the repair of an automobile's bumper and not the driver's broken arm.
Additionally, the abandonment of a no-fault system will require a finding of fault for injuries caused in every auto accident. This is a dramatic departure from Florida's historic efforts to reduce lawsuits.
Federal and state laws require Florida's hospitals and trauma centers to treat all crash victims - regardless of ability to pay. A recent survey conducted by FHA found that hospitals received between $325-$350 million in PIP payments in 2006. Without this vital funding support, Florida's fragile trauma care network will be threatened as local governments and health insurers struggle to absorb the cost of the loss of no-fault insurance.
The Safety Net Hospital Alliance includes the state's teaching, public, and children's hospitals. While these 14 systems represent just 10 percent of the state's hospitals, they provide emergency care to two-thirds of all trauma patients and 50 percent of hospital charity care annually.
"While the sunset of PIP will be detrimental for all hospitals, our safety net hospitals will be disproportionately impacted," said Safety Net Hospital Alliance of Florida President Tony Carvalho.
"Two converging events - the potential elimination of PIP and the looming Medicaid budget cuts that hospitals face in the upcoming special session - place an enormous burden on our safety net institutions as they quickly examine the potential combined impact, which could be in excess of a half-a-billion dollars," said Carvalho.
The Florida Hospital Association is a Tallahassee-based advocacy organization representing Florida's hospital community and more than 1,800 professional members.
The Safety Net Hospital Alliance is comprised of 14 "safety net" hospital systems in Florida: the state's six statutory teaching hospitals, six public hospitals, and two children's hospitals. The 14 hospital systems represent just 10% of Florida's total number of hospitals, but provide:
* 66% of all trauma patient admissions
* 50% of the state's charity care
* 80% of the state's graduate medical education
