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Scott and Atwater want PIP fix — but how?

Tuesday, November 15th, 2011 by John Kennedy

Gov. Rick Scott and Chief Financial Officer Jeff Atwater called on lawmakers Tuesday to revamp state law governing motorists’ personal injury protection (PIP), which critics say is costing Floridians an extra $1 billion a year in higher costs stemming from fraud, questionable medical treatment and legal costs.

Insurance rates for the $10,000 mandatory PIP coverage have spiked as much as 80 percent in some Miami and Tampa Bay-area neighborhoods between 2008 and 2010, according to state officials.

PIP insurance claims also are up 40 percent over that time even as accidents statewide have tumbled by 8 percent – with leaders saying the disparity stems from a rising number of suspected staged accidents to fraudulently draw payments.

Atwater turned to law enforcement officers flanking him Tuesday at a Capitol news conference, saying, “we’re going to get you some relief.”  He also said consumers needed help.

“They have been trying to swim in a pool of piranhas, and we’ve got to throw them a lifeline,” Atwater said.

But Atwater, Scott and several lawmakers attending Tuesday’s call for change acknowledged that there was no clear path to overhauling the PIP system. 

Insurers, the hospital industry, lawyers and health care providers  were gathered into a working group last month under state insurance consumer advocate Robin Westcott, but failed to agree on recommendations.

“They’re all fighting for their part,” Atwater said.

Now, it’s legislators’ turn.

“It’s going to be a challenging bill to get passed,” acknowledged Rep. Bryan Nelson, R-Apopka, an insurance agent, who doubles as chairman of the House Insurance and Banking Subcommittee.

Scott on Solantic: “I’m not involved”

Tuesday, March 29th, 2011 by John Kennedy

Gov. Rick Scott offered little Tuesday when asked whether he would consider ending his family’s financial stake in Solantic, the urgent care company he founded and which provides drug-testing services.

Scott’s role in the firm was spotlighted when he signed an executive order ordering drug-testing for new state hires and random screening of current employees.

“As I’ve told you, I’m not involved in that company,” Scott said, refusing to directly answer whether he would consider prohibiting the state from contracting with the firm.

Scott, who reported a net worth of $218 million when he filed papers to run for governor last summer, had pledged to put his financial holdings into a blind trust, when elected. Instead, in January, Scott transfered his Solantic stock to his wife, Ann.

Scott built most of his wealth from growing Columbia/HCA health care into one of the nation’s biggest hospital chains. Three years after he left Columbia/HCA, the company paid $1.7 billion to end a federal investigation into accusations of Medicare fraud — the largest settlement of its kind in the nation’s history.

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