| Monday, January 11, 2016 |
| Reminder: Why we Live in Florida and Encourage Others to Move Here |
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A couple of articles we read recently reminded us that our great state of Florida continues to experience increases in population and popularity. Our elected officials do listen sometimes and do things that are very right for our state. We read about a recent “from California to Florida” transplant who says he wouldn’t live anywhere else. He even called Florida “America’s new state of opportunity.” We like that! So, what are some of the things about Florida that make it great? My personal list would be much too long to be contained in our newsletter, but we will list a few of the obvious. Starting with wonderful weather (and some of us are loving this cool snap right now), and our lack of a state income tax is certainly attractive to folks and businesses that want to keep more of their earnings in order to purchase the goods and services that make their lives more comfortable and pleasant. And what about that growing population? For years Florida has been considered the place to retire for those who have spent most of their lives dealing with snow and ice. For sure that is still the case, and we say hooray to that! Retirees, especially seniors who have retired and are often working again, buy lots things and pay lots of sales tax on those things. More often than not, it is the seniors who spend their money on big-ticket items that the post baby boomers still can’t afford. We love our seniors who bring their dollars, wisdom, and free time to our state. We also love and want the baby boomers and post baby boomers to join us, bringing with them all the energy, talent, experience and new ideas to us. So tack on to that list great universities, beautiful beaches, fun and alluring theme parks, and many acres of pristine land that is just plain gorgeous, and you have described home to us Floridians. So, while we too often complain about our legislative body and what we think they don’t do right, we must applaud what they do that brings to Florida more jobs, more housing, more teachers, more schools and more good folks. We are excited about the future of Florida and will continue to work alongside our legislative body to make the future the best it can be for all of us. |
| Commissioner McCarty Announces His Resignation |
| Last Tuesday, January 5, we all heard the news that Kevin McCarty is resigning from his position as Florida Insurance Commissioner effective May 2, 2016, a post he has held since 2003. Our very own CEO, Lisa Miller, spent many years working alongside Kevin and was contacted by a half a dozen reporters to get her reaction to his announcement. The Gainesville Sun and the News Service of Florida reported: “(McCarty’s) opportunities are endless,” said Lisa Miller, who has spent nearly three decades as an insurance regulator and lobbyist. “He’s a rare breed. He’s funny. He’s brilliant. He asks tough questions. He’s no shrinking violet.”
But Miller acknowledged that Scott’s effort to remove McCarty from office played a role in the decision. “I think the events of this past year have given him the realization that his work is done here,” Miller said. “He can move on and leave Florida with his head held high.” We’ve worked very closely with Commissioner McCarty for many years, before and since he was appointed as Insurance Commissioner and have witnessed and been a part of the many accomplishments throughout his years of service. While the Commissioner isn’t sharing his plans for the future at this time, what he is sharing with Floridians is his work in making Florida a growing, stable insurance market, one whose residual property insurer has depopulated from 1.6 million to just slightly more than 500,000 policies in recent years, with more depops to come. Along with the property insurance marketplace, both the automobile and workers’ compensation insurance markets remain strong. “I have mixed emotions about leaving,” Commissioner McCarty said. “In many ways, it’s like leaving your family.” We too have mixed emotions…appreciation for the great work the Commissioner has done, pride in the state of our insurance marketplace, and sadness that Commissioner McCarty won’t sit in that very important seat in government after May 2. But, we know the Commissioner isn’t finished with his work and we look forward to seeing where he lands and what he tackles next. We’ll be there for him, that’s for sure. |
| Another Florida Supreme Court Decision on Workers’ Compensation Comes Down |
| For the second time in the past 60 days, the Supreme Court of Florida has declined to hear a case from a lower court regarding the constitutionality of workers’ compensation law. In this case, Florida Workers Advocates asked the Supreme Court to review the Third District Court of Appeal’s decision last June to overturn a 2014 Circuit Court ruling by Eleventh Judicial Circuit Judge Jorge Cueto in a lawsuit against the state Attorney General’s office filed by a Miami-Dade County government employee, the Florida Workers’ Advocates and the Workers’ Injury Law and Advocacy Group. We have reported on this case in detail in prior newsletters and won’t restate the circumstances of the case again here. If you are interested in the details you can review the case and the courts findings via the link: http://flojcc.blogspot.com/2015/12/the-florida-court-declines-review-of.html . We will tell you that the original complaint filed in 2011 questioned the constitutionality of provisions in the workers’ compensation law that protected employers from lawsuits for work-related injuries. Several cases regarding workers’ compensation law still remain with the Florida Supreme Court and we will certainly let you know when the court rules. |
| Released Late Last Week… |
| Department of Financial Services (DFS) issued its Fraud & Compliance Report authored by the Division of Insurance Fraud, Bureau of Worker’s Compensation Fraud and the Division of Workers’ Compensation. The report is a joint report summarizing their respective efforts and activities in combating workers’ compensation fraud and employer non-compliance. The July 1, 2014 – June 30, 2015 report can be viewed at the following link:
We all know the Florida Division of Insurance Fraud continues to be a perennial leader in the fight against insurance fraud. During Fiscal Year 2014/2015, investigative efforts by the Division of Insurance Fraud resulted in 1,590 cases presented for prosecution, 1,318 arrests, and 1,195 successful prosecutions. During this time period, the Division received and reviewed over 17,300 referrals of suspected insurance fraud. Please reach out to the fraud investigators in your area and encourage them to fight on. They are doing all they can, often with limited resources, to protect policyholder premiums from those who want to file false claims, inflated claims or participate in other unscrupulous activities. |
| Florida Health Insurance Advisory Board Issues Legislative Recommendations |
| Late last month the Florida Health Reinsurance Program, functioning as the state’s Health Insurance Advisory Board, submitted to the Office of Insurance Regulation its legislative recommendations for the upcoming 2016 Regular Session. Although the Advisory Board does not seek out members of the Legislature to file bills on its behalf, Florida law does require the board to prepare an annual report of its recommendations and submit the report to the Insurance Commissioner, President of the Senate and Speaker of the House. In developing its legislative recommendations the board seeks direct input from a number of key health insurance stakeholders including insurers, insurance agents, business owners, consumers, and insurance regulators. One of the Advisory Board’s recommendations that will likely generate significant attention has to do with the balance billing issue. As most readers are aware, under Florida’s Insurance Code providers under contract with HMOs are not allowed to balance bill subscribers (members) for the difference between what they are paid by an HMO for a particular service and their routine charge for the same service. The Advisory Board has recommended in its report that this prohibition be extended to other insurance coverage providers such as PPOs and EPOs. The Board has made a total of six recommendations and you may read and analyze each recommendation by clicking HERE for access to the report. |
| Employers Continue to Take Tough Stance on Marijuana Issue |
| Forbes Magazine: Florida’s Insurance Fraud Problem Makes National News |
| In an article entitled, “Fraud Pushing Up Premiums in Florida,” Author Steve Pociask reported that 90% of Citizens water damage claims come from Miami-Dade, 30% of claims skip or try to not have a Citizens inspection and many claims have inflated costs that are provable but tough to convince the judiciary.
And we all know Citizens rates will go up this year by about $400 a person in South Florida because of these shenanigans. See the full article at http://www.forbes.com/sites/stevepociask/2015/12/29/fraud-pushing-up-premiums-in-florida/. In our last edition we talked about the retired couple in Clermont who was duped by roofers and this happens every day. Please send us the names of individuals who are, as the movie “Network,” are mad as H&&&$$##ll and are not going to take it anymore! |
| 2016 Session Kickoff |
| We’ve said it before, there are only two real “seasons” here in Tallahassee; the college football season and the legislative season. College football is over for us until Fall, but the legislative gridiron officially starts next Tuesday. We’ve been in training for quite a while now and we’ll be suited up and on the field waiting for that official kickoff. Join us when you can but know that we’ll have play-by-play action reports for you through our newsletter, by phone, in person, by email and all other means at our disposal. As with the college football season, there will be winners and losers, but in the end, it’s really about good sportsmanship. Stay close…. we’ll be in touch.
Lisa and the LMA Team |
