Monday, December 12, 2022

Florida legislators take another crack at insurance

Presented by AARP: Gary Fineout's must-read briefing on what's hot, crazy or shady about politics in the Sunshine State
Dec 12, 2022 View in browser
 
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By Gary Fineout

Presented by AARP

Hello and welcome to Monday.

The Main Thing — Florida's legislative leaders on Friday evening finally gave the public notice about what they plan to do during this week's special session to try to settle the state's persistent insurance crisis.

Manifesto — The list includes giving the insurance industry new measures that will put additional limits on lawsuits and attorney fees that will likely make it less likely consumers will challenge their insurer. The promise is that this will stabilize the market and eventually entice private industry to invest more in the Florida insurance business. Insurers will be asked to speed up the process for claims (although there is a way out of that).

The Space Between — Other parts of the package up for consideration: More than 1 million customers in the state-created Citizens Property Insurance will be in for some tough medicine — including making it easier to push homeowners out of Citizens and into higher-priced policies with companies that may not even be as well capitalized as Citizens.

Both Ends Burning — Oh, and taxpayers will be asked to provide another $1 billion for a backstop to insurers. That's on top of $2 billion provided earlier in the year.

The Thrill Of It All — Both House Speaker Paul Renner and Senate President Kathleen Passidomo have already tried to lower expectations that these plans will lead to lower rates anytime soon in a state where homeowners already pay nearly three times the national average.

Re-Make/Re-Model — Passidomo, during a weekend television interview with CBS Miami, maintained legislators would pass a "fair and balanced" bill unlikely to satisfy the well-heeled special interests involved. (It seems, however, one side likes it a lot more than the other.)

Dance Away — But this is the gamble that legislative leaders — as well as Gov. Ron DeSantis — have decided to make. Give the industry what it wants, with the hope that this time it will work.

Same Old Scene — Let's stop here and say that those in the industry over the last 20 years have repeatedly promised that this step or that step will make it all work out. But there is ample evidence that the litigation numbers for Florida make the state way out of balance with the rest of the nation.

More Than This But this crisis isn't just the age-old trial attorney vs. insurance company special interest fight. There are things beyond the control of politicians, such as hurricanes. There's also the fact that life in paradise has led to building close to the coast and in other potentially risky areas. The bills don't touch on that fact. When a storm hits, those who bolster insurance companies — those who sell reinsurance — either raise their prices or cut off access. That, too, rises prices for consumers.

End Of The Line — Politically speaking, Republicans who run the state have concluded that they need to do something because further deterioration of the insurance market could lead to the collapse of the state's all-important real estate market, undermining Florida's economy. This whole mess is another reminder that living in Florida isn't cheap. The question, of course, is whether any of this will work.

— WHERE'S RON? — Nothing official for Gov. DeSantis.

Have a tip, story, suggestion, birthday, anniversary, new job, or any other nugget for Playbook? Get in touch: gfineout@politico.com

 

A message from AARP:

Chronic problems—like understaffing and low-performing nursing homes continue to run rampant throughout Florida, leaving our most vulnerable seniors at risk. That's why AARP is fighting to make sure residents receive safe, high-quality care. Florida lawmakers can make a positive difference in the lives of nursing home residents during the 2023 legislative session. Nursing home residents deserve better. Learn more.

 
... DATELINE TALLAHASSEE ...

INTERESTING READ — " Florida insurance execs saw big payouts in years without hurricanes ," by Tampa Bay Times' Lawrence Mower: "But state lawmakers have largely ignored an issue that has been directly blamed for numerous past company failures — and allowed some executives to make eye-popping sums of money over the last decade, when companies were wildly profitable thanks to years without a storm."

Some of the numbers — "Between 2014 and 2018, the CEO for Fort Lauderdale-based Universal Insurance Holdings made between $14 million and $25 million each year, corporate filings show. The company has reduced its policies in Florida over the last year. At St. Petersburg-based United Insurance Holdings, whose insurance arm fell under state supervision last week, the company awarded millions of dollars in stock dividends, most of which went to company officers and directors, even while its profits shrank, according to corporate filings."

THE BIG FIX — " Legislators have goals for fixing Florida's property insurance market ," by Miami Herald's Mary Ellen Klas: "Florida legislators have said the problem needs an urgent solution, so they will return to Tallahassee for a week-long special session on Monday to address the problem. 'We know we have to do some aggressive things that some people in the insurance industry aren't going to like, some consumers aren't going to like, some legislators aren't going to like,' said Rep. Bob Rommel, R-Naples, chairman of the House Commerce Committee at the Florida Chamber Insurance Summit held in Orlando last week. 'But you still have to do it.'"

GUESS WHO DOES LIKE IT — " Florida bills offer broad attack on insurance costs: Legal fees, AOBs, reinsurance ," by Insurance Journal's William Rabb: "The bills were met with widespread applause from insurance industry leaders, attorneys and consultants. 'The proposed legislation sends a strong message that Florida is serious about stabilizing the property insurance market and creating an environment to attract capital and create more options for Florida's insurance consumers,' the Florida Association of Insurance Agents said in a statement."

ALSO UP THIS WEEK — " Proposed toll credit could save frequent commuters $550 a year ," by South Florida Sun-Sentinel's Ron Hurtibise: "Lawmakers are expected to take up a proposal unveiled in September by Gov. Ron DeSantis to provide 50% toll credits to drivers who go through toll stations 40 or more times a month. The proposal seems tailored to commuters who drive through at least one toll station to and from work five days a week, four weeks a year. That's 40 tolls, and the costs can really add up, which can really, um, take a toll."

RESOLUTION — Rebekah Jones, the fired Department of Health employee who gained national attention for questioning how Florida was reporting Covid-19 deaths and then mounted a campaign for Congress, has reached an agreement with prosecutors that is expected to drop a felony charge against her.

Jones was arrested back in January 2021 and accused of illegally accessing a state computer system to send out a message to approximately 1,750 state employees that stated "it's time to speak up before another 17,000 people are dead. You know this is wrong. You don't have to be part of this…"

The arrest followed a highly-publicized raid on Jones' then-Tallahassee home, where she publicly shared video of state law-enforcement agents entering the residence.

At the time, Jones maintained she had nothing to do with the DOH hack. But she reached a deferred prosecution agreement late last week with local prosecutors where she agreed to pay $20,000 over the next two years to the Florida Department of Law Enforcement to cover investigative fees, 150 hours of community service, and see a licensed mental health professional once a month. The agreement, which Jones signed, also says she "admits her guilt" to the initial charge filed against her.

If Jones follows the conditions in the agreement, the charge against her will be dropped. Georgia Cappleman, an assistant state attorney, called the deferred prosecution agreement an "appropriate way to handle it."

Late last week, Jones let people know about her agreement by sending out a lengthy statement about it that ripped into Gov. Ron DeSantis and the media. Representatives of the governor's office declined to comment.

Jones unsuccessfully ran against incumbent Republican Rep. Matt Gaetz for Florida's 1st Congressional District in November.

— " Joe Harding has resigned but the effects of his 'parental rights' law will carry on ," by Florida Phoenix's Danielle J. Brown

— " House Dem leader proposes electing Insurance Commissioner and more ," by Florida Politics' Renzo Downey

— " State Senate Minority Leader Lauren Book braced for a 'tough' legislative session ," by Palm Beach Post's Stephany Matat

— " Tampa Bay region loses leadership clout in Legislature ," by Tampa Bay Times' William March

— " Shawn Hamilton staying on at Department of Environmental Protection ," by Florida Politics' Renzo Downey

 

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DESANTISLAND

'WE HAVE TOO MANY RICHES IN OUR PARTY' — " DeSantis ignores Trump, touts Florida victory at donors event ," by Bloomberg's Amanda L. Gordon, Felipe Marques and Michael Smith: "The event, which had about 100 people at the Miami room at the Four Seasons Hotel, was for 'medium dollar donors, not million dollar donors,' Armando Chapelli, of Key Biscayne, chairman of Washington Consulting Group, said after the meeting ended. Asked about the possibility of Trump and DeSantis both running in 2024, Ann Reyes, chief executive officer of Florida-based National Airspace Technologies and Chapelli's partner, said, 'It will be interesting.' They are both elected members of the Miami-Dade County Republican Party."

THE PARTNER — " Who is Casey DeSantis? First lady knows 'what's best for Ron ,'" by Orlando Sentinel's Jeffrey Schweers: "[Casey DeSantis] is a formidable presence, an equal partner with her own office and staff, whose advice he leans on heavily, allies of the couple say. 'She's an equal part and partner,' said Brian Ballard, one of the most powerful lobbyists and political insiders in Florida and Washington, D.C., and a former adviser to Donald Trump. 'Her advice has served him well.' Not only does he heed her counsel, Ballard said, but she's always right. 'She sees clearly what's best for Ron.'"

Florida Gov. Ron DeSantis and his wife Casey DeSantis watch President Donald Trump speak during a campaign rally at the Orlando Sanford International Airport in Sanford, Fla., Monday, Oct. 12, 2020.

Photo by Doug Mills/The New York Times/Redux

CAMPAIGN MODE

FOR YOUR RADAR — "' The party's on fire': Florida GOP roiled by far right takeover efforts despite 2022 wins ," by Sarasota Herald-Tribune's Zac Anderson: "Urged on by prominent far right figures such as Steve Bannon and Michael Flynn, ultra conservative GOP activists are seeking to take over county parties across Florida during leadership elections this month. Some have failed, such as the recent effort to install a Flynn acolyte as county party chair in Sarasota County. Some already have been successful. Candidates backed by far-right businessman Alfie Oakes, who was at the U.S. Capitol when it was overrun by Trump supporters on Jan. 6, 2021, took over the Collier County GOP. Other leadership battles are still playing out."

'WE HELD ON' — " The big Republican Latino realignment didn't happen in 2022. What now? " by Washington Post's Dan Balz: The big exception was Florida, where the two Republicans atop the ticket — Gov. Ron DeSantis and Sen. Marco Rubio — rolled up impressive majorities among Hispanic voters. Elsewhere, however, the story was one of steadiness rather than slippage by Democrats. 'Outside of Florida, we saw a portrait of stability,' said Melissa Morales, president of Somos Votantes, a Latino advocacy and organizing group that was working to support Democratic candidates. 'We held on.'"

— " Stephanie Murphy puts blame for statewide Democratic losses on misguided airwave campaign ," by Florida Politics' Jacob Ogles

 

A message from AARP:

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TRUMPLANDIA AND THE SWAMP

WHAT COMES NEXT — " Congressional Republicans divided on attacking Trump investigations ," by Washington Post's Jacqueline Alemany, Isaac Arnsdorf and Josh Dawsey: "Republicans in Congress are splintering over how aggressively to run interference for former president Donald Trump as he faces potential criminal prosecution, with only his closest allies planning to directly attack the Department of Justice investigations now under the purview of special counsel Jack Smith. The chasm between lawmakers who have continued to vehemently defend the newly announced presidential candidate and those who have started to quietly inch away from the former president widened last week as top GOP leaders laid out the party's investigative priorities."

...HURRICANE HOLE...

YUCK — " Florida's aging infrastructure unleashed untold gallons of raw sewage during Ian ," by Florida Today's Jim Waymer: "Utilities unleashed untold millions of gallons of raw sewage into coastal waters and neighborhoods across Florida as Ian struck and in the days afterwards, according to data from the Florida Department of Environmental Protection (DEP). And while Ian slammed into Southwest Florida and then churned across the state with a fury not seen since Hurricane Charley in 2004, the sewage spills in many places were going on and persisted well before and after the storm. According to the DEP, some of those spills took place far from the hurricane's heaviest rainfall and winds."

— " Insurance was out of reach for these hurricane victims. Now they're digging deep to rebuild ," by Miami Herald's Clara-Sophia Daly and Camellia Burris

— " State still working with boat owners to remove vessels in wake of Hurricane Ian ," by Fort Myers News-Press' Chad Gillis

 

JOIN THURSDAY FOR A CONVERSATION ON FAMILY CARE IN AMERICA : Family caregivers are among our most overlooked and under-supported groups in the United States. The Biden Administration's new national strategy for supporting family caregivers outlines nearly 350 actions the federal government is committed to taking. Who will deliver this strategy? How should different stakeholders divide the work? Join POLITICO on Dec. 15 to explore how federal action can improve the lives of those giving and receiving family care across America. REGISTER HERE .

 
 
PENINSULA AND BEYOND

'ONGOING' INVESTIGATION — Florida GOP donor, DeSantis ally under 'active investigation' weeks before death, authorities say , by POLITICO's Matt Dixon: Kent Stermon, a prominent Jacksonville-area Republican donor and friend of Gov. Ron DeSantis found dead in his car Thursday night, was under "active investigation" by the Jacksonville Sheriff's Office. "This investigation remains ongoing at this time and will continue until its completion," Jacksonville Sheriff T.K. Waters told POLITICO. Waters said that because the investigation remains active, there is "limited information available to release at this time."

'EVERYTHING IS GETTING WORSE' — "' Cuba is depopulating': Largest exodus yet threatens country's future ," by The New York Times' Ed Augustin and Frances Robles: "The country has been hit by a one-two-punch of tighter U.S. sanctions and the Covid-19 pandemic, which eviscerated one of Cuba's lifelines — the tourism industry. Food has become even more scarce and more expensive, lines at pharmacies with scant supplies begin before dawn and millions of people endure daily hourslong blackouts. Over the last year, nearly 250,000 Cubans, more than 2 percent of the island's 11 million population, have migrated to the United States, most of them arriving at the southern border by land, according to U.S. government data."

AFTER THE LOVE IS GONE — " As bitcoin plummets, Miami vows to hold onto its crypto dreams ," by Washington Post's Tim Craig: "When Miami Mayor Francis Suarez unveiled an 11-foot, 300-pound black fiberglass reproduction of the Wall Street bull last spring, he hailed it as a symbol of the city's arrival as the 'capital of crypto.' 'Welcome to the future,' he said, calling for digital currencies like bitcoin to be 'integrated into every aspect of society' before the end of the year. But eight months later, the Republican mayor's dream of turning Miami into a hub for the digital currency industry has hit a speed bump. The value of bitcoin has plummeted, a blow to Miami residents who bought into Suarez's call to invest in digital currencies."

'THEY ARE DISTRAUGHT' — " As flu season hits South Florida hard, drug shortages cause panic, " by South Florida Sun-Sentinel's Cindy Krischer Goodman: "Harni Patel, pharmacist and owner of Tamarac Pharmacy, finds herself fielding calls daily from panicked parents of feverish children searching for everything from Children's Tylenol to Amoxicillin to Tamiflu. Flu season has hit hard in South Florida, and drug shortages rippling through the country are creating nightmares for those who get sick. 'Parents are coming to the pharmacy to find an antibiotic and then when can't find what they need, they leave to go to another,' Patel said. 'They often have a sick child with them, and they are distraught that they cannot get their medication.'"

— " As COVID spikes again in Florida, seasonal flu rising with it ," by Palm Beach Post's Chris Persaud

— " SpaceX overnight launch sends private lander, NASA ice surveyor to moon ," by Orlando Sentinel's Richard Tribou

 

A message from AARP:

Chronic problems—like understaffing and low-performing nursing homes continue to run rampant throughout Florida, leaving our most vulnerable seniors at risk. As our lawmakers get ready for the 2023 legislative session, improving conditions for nursing home residents must be a top priority. AARP is urging lawmakers to protect seniors in nursing homes by enhancing oversight, addressing workforce shortages, and holding facilities accountable for providing quality care. Florida lawmakers can make a positive difference in the lives of nursing home residents during the 2023 legislative session. Learn more.

 
ODDS, ENDS AND FLORIDA MEN

The Orion capsule is pictured splashing down into the Pacific Ocean.

This photo provided by NASA shows the Orion capsule coming back from the moon. | NASA via AP


— " NASA's Orion capsule blazes home from test flight to moon ," by The Associated Press' Marcia Dunn: "NASA hailed the descent and splashdown as close to perfect. 'I'm overwhelmed,' NASA Administrator Bill Nelson said from Mission Control in Houston. 'This is an extraordinary day ... It's historic because we are now going back into space — deep space — with a new generation.' The space agency needed a successful splashdown to stay on track for the next Orion flight around the moon, currently targeted for 2024. Four astronauts will make the trip. That will be followed by a two-person lunar landing as early as 2025."

BIRTHDAYS: Former state Rep. Dick Batchelor .... former state Rep. Jennifer Webb

 

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