(Additional contacts listed at end of release)
FOR IMMEDIATE RELEASE
Aug. 16, 2007
Broad New Coalition Urges Governor and Legislature to Preserve Mandatory Auto Insurance Coverage in Upcoming Special Session
TALLAHASSEE, FL – A broad new coalition – comprising hospitals, emergency care providers, first responders, safety officials, the state’s largest health insurer, and a major auto insurer – today urged Governor Charlie Crist and the Florida Legislature to preserve mandatory auto insurance coverage for drivers in the upcoming special session.
The group, the Coalition to Protect Florida’s Drivers, is petitioning Governor Crist, Senate President Ken Pruitt, and House Speaker Marco Rubio to address the looming October 1 sunset of Florida’s 37-year-old no-fault system in the special session that begins September 18. The Coalition is calling on the Legislature to either reform and extend the current system – which requires all drivers to carry minimum mandatory auto insurance coverage – or to replace it with alternative mandatory coverage.
The coalition stated that if Governor Crist and legislative leaders fail to address auto insurance and do not require mandatory coverage in the special session, Floridians can expect a surge of uninsured drivers; more dangerous roads; higher health insurance and auto insurance costs; threats to healthcare access; and a new wave of costly, time-consuming lawsuits over car crashes.
Florida currently requires drivers to carry minimum mandatory coverage in the form of Personal Injury Protection (PIP) and Property Damage (PD) coverage. However, the Florida Department of Highway Safety and Motor Vehicles has said that if mandatory PIP coverage is repealed, the state cannot force drivers to carry PD coverage. As a result, Florida is poised to become one of only three states in the entire U.S. – besides low density New Hampshire and Wisconsin – with no minimum mandatory auto insurance requirements for drivers.
“Simply allowing the system to die October 1 without any form of mandatory coverage is a prescription for disaster for all Floridians,” said Wayne NeSmith, president of the Florida Hospital Association (FHA). “Floridians will have less coverage but will pay more. Everyone in this state who purchases Bodily Injury liability coverage, Uninsured Motorist coverage or health insurance should be aware that the cost for these coverages will increase if the Legislature fails to act.”
The coalition, which is comprised of 37 organizations and is growing, is coordinated by FHA and the Safety Net Hospital Alliance of Florida, which includes the state’s teaching, public and children’s hospitals. Besides hospitals, other members include Blue Cross and Blue Shield of Florida, the state’s largest health insurer; Direct General Insurance Company, a large state auto insurer; the Florida Safety Council; and the Florida Fire Chiefs’ Association, among others.
Both Blue Cross and Blue Shield of Florida and Florida Chief Financial Officer Alex Sink have separately warned that any cost savings in auto insurance achieved by the expiration of mandatory coverage will be largely erased by an increase in health insurance premiums – as the cost of medical care for car crashes will be shifted to health insurance policies.
Direct General Insurance Company believes that mandatory auto insurance is an important protection for Floridians. With more than 150,000 policyholders statewide, Direct General is a “non-standard” insurer that offers basic auto insurance policies that include PIP and PD coverage. These basic policies typically are purchased by lower income, working class families and drivers with blemishes on their record – those typically shunned by big insurers.
“Without mandatory auto insurance requirements, there will be more uninsured drivers,” said Dan Tarantin, CEO of Direct General Corporation. “Responsible drivers will wind up paying more for their auto insurance – not less – because they will have to increase their Bodily Injury, Uninsured Motorist and Collision coverage to protect themselves. Additionally, if drivers have no Property Damage coverage, there will be no insurance funds available to repair damage they cause to other vehicles in an accident. That means the other driver better have Collision coverage to pay for damage to his own vehicle, or he’ll bear the cost.”
The Florida Fire Chiefs’ Association, which includes 2,370 fire chiefs and executive fire officers, is concerned that fire and EMS departments could lose millions of dollars in emergency transport reimbursements if no-fault expires.
Public sector firefighters and EMS personnel transport 80 percent of all auto crash victims to emergency rooms and trauma centers. The Fire Chiefs’ Association fears law enforcement officers and other first responders will be forced to spend more time in court testifying, instead of on the job, as lawyers argue over who’s at fault in car crashes.
FHA and the Safety Net Hospital Alliance say hospitals and trauma centers statewide will be hit hard if the law expires. Emergency rooms and trauma centers are required by law to treat all crash victims – regardless of ability to pay – but motorists who lack health coverage may have trouble obtaining follow-up non-emergency care if doctors don’t believe they’ll be paid for treatment. Hospitals estimate they received $350 million in PIP reimbursements in 2005 – without this funding support, the state’s fragile trauma care network will be threatened, and hospitals and local communities will absorb the costs.
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Listed below is contact information for members of The Coalition to Protect Florida’s Drivers, along with the full coalition membership list.
Coalition
to Protect Florida’s Drivers
Contacts
Blue Cross and Blue Shield of Florida
Valerie K. Rubin
Sr. Consultant, Media Relations
Blue Cross and Blue Shield of Florida
(904) 905-5315
Florida Safety Council
Tom Guilmet
Executive Director
(407) 897-4412
Email: tguilmet@floridasafety.org
Safety Net Hospital Alliance of Florida
Tony Carvalho
President
(850) 201-2096
Direct General Corporation
Ron Bartlett
Spokesperson
(813) 775-6203
Florida Association of ER Nurses
Darleen Williams
President, State Council
(321) 841-8110
Cell: (407) 702-3164
Email: ladawill@sihf.net
Florida Fire Chiefs’ Association
Barry Baker
President
(386) 676-2744
Coalition to Protect Florida’s Drivers
A broad coalition of organizations is urging Governor Charlie Crist and the Florida Legislature to address mandatory auto insurance coverage in the September special session. Here’s a current list of members:
Florida Hospital Association
Safety Net Hospital Alliance of Florida
Florida Statutory Teaching Hospital Council
Blue Cross and Blue Shield of Florida
Direct General Insurance Company
Florida Fire Chiefs’ Association
Florida Nurses Association
Florida Safety Council
Florida Trauma Alliance
Florida College of Emergency Physicians
Florida Ambulance Association
Association of EMS Providers
Florida Academy of Healthcare Attorneys
Florida Association of ER Nurses
Florida Association for Managed Care Professionals
Florida Association for Patient Financial Services
Florida Association for Quality Coordinated Care
Florida Association of Healthcare Government Relations Executives
Florida Association of Healthcare Recruiters
Florida Healthcare Administrative Professionals Association
Florida Healthcare Corporate Compliance Association
Florida Orthopaedic Society
Florida Safety Council
Florida Society for Healthcare Education and Training
Florida Society for Healthcare Human Resources Administration
Florida Society for Healthcare Public Relations and Marketing
Florida Society for Healthcare Risk Management & Patient Safety
Florida Society for Healthcare Security, Safety and Emergency Management
Professionals
Florida Society for Hospital-Based Skilled Nursing Facilities
Florida Society for Patient Representatives
Florida Society for Rehabilitation
Florida Society of Healthcare Environmental Services
Florida Society of Hospital Physician Executives
Hospital Home Care Association of Florida
Hospital Wellness Association
South Florida Hospital and Healthcare Association
Florida Society of Ambulatory Surgical Centers