Are We There Yet?
One of the things I love to do is reminisce about all the fun times my family had on our vacations. My father passed away when I was two years old so my mom was adamant that our family made memories by traveling together. She knew that my sister, brother and I would always remain close because family vacations were so special. Whether it was a short two day excursion or a week-long trip, we traveled to many interesting and sometimes, little known places in Florida like the city of Bokeelia, FL. Bokeelia was one of those excursions where we three kids would bother our mom with, “Are we there yet, are we there yet, and how much further do we have to go”??!
I liken these types of questions to what we are experiencing in the legislature when it comes to insurance issues. Think about it:
Health Insurance: Can we “get there” with the national affordable healthcare act (ACA), i.e., can Florida afford to implement it or not? Does our legislature have the authority as the tea party activists say we do to “just say no”? At the Tuesday, January 22, 2013 meeting, two public policy speakers, one from the conservative CATO Institute provided all the reasons for Florida not to move ahead and the other from a healthcare economist with the Massachusetts Institute of Technology who supported ACA’s Florida implementation. Please take a minute to read the debate in my notes posted at the bottom of our newsletter and see the committee packet which was almost 200 pages just for this single meeting! Both speakers did agree, after two hours of disagreement, that Florida should NOT implement a healthcare exchange for 2014 and to wait and see how the ACA will play out in other states. Also, see this article for a perspective on the debate.
Auto Insurance: Can we “get there” in auto Insurance? I attended the Auto Insurance Fraud Strike Force meeting — meeting materials. House Bill 119 is heading us in the right direction: For example, take a peek at the Insurance Information Institute’s slides 17 and 18. These slides state that the average cost in Florida for a PIP claim is up 50% – it was $6,600 in 2004 and was at $10,000 by mid-2012 but the good news is that by the 3rd quarter of 2012, the average claim had come down to $9500. Is that “getting there”? You tell me! Other discussion involved how the bad guys are finding work-a-rounds to evade House Bill 119’s provisions – doctors “covering” for massage therapists and acupuncturists so they can bill. I stay close to the Division of Insurance Fraud (DIF) – see page 32 and beyond for some fascinating statistics of the good work DIF is doing discussed in their 2012 annual report.
Just this week, the National Insurance Crime Bureau issued a report with its title telling the story: Florida leads the country in insurance fraud and especially organized crime. We have to “get there,” folks wherever “there” is! I know each of you is working hard to help in this effort.
Property Insurance: Can we “get there” with property insurance? Both the House and Senate had insurance committee meetings with the House focusing on OIR rate filing processes (seeking ways to improve them); see the committee meeting packet. The Senate committee (final meeting packet) hosted several more speakers from its previous meeting with ideas to make Florida’s property market better, including:
–Citizens eliminating coverage for 2nd homes.
–Citizens using $300 million of its surplus to fund wind mitigation and home hardening.
–Using the cat fund as leverage to decrease the cost of private reinsurance so Florida-based companies could take less desirable policies from Citizens and afford to reinsure them.
-“Right-Sizing” the cat fund so the risk is ceded to the private reinsurance market letting competition drive down the rates and putting our state on better footing.
–Strengthening laws that can stop the insurance fraud.
–Creating “clearinghouses” to filter policies and make sure they don’t get into Citizens if they have an offer of coverage that would better qualify them for the private market.
So many ideas – so much work to do to “get there.” Be looking for proposed legislation that will be an inclusive bill of these ideas and more; and, please read the notes from both the House and Senate committee meetings at the bottom of this email.
As you know, I get lots of ideas from you, our readers-you who are on the front lines adjusting auto claims or talking to businesses that want to understand why their health insurance premiums sky rocketed. I am especially sending strength to those of you who have to stare down unscrupulous public adjusters who are doing all they can to delay a claim and inflate its costs. I love hearing from you… so whether it’s a note about your favorite family vacation memory or an insurance topic, I’m a phone call or email away. Please stay in touch and see you soon.
Upcoming Insurance & Banking Committee Meetings:
Feb. 6, 2013: House Insurance & Banking 9:00-11:00am
Feb. 6, 2013: Senate Insurance & Banking 10:30-12:30pm
Continued best wishes for a good 2013 & keep scrolling down for more notes.
My best, Lisa
