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July 02, 2007 -- Fort Walton Beach, Florida

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Florida Health Insurance Plan - Proposal Raises Taxes on Wealthy

President Bush is hoping to turn the upcoming debate over children's health insurance into one that focuses on helping all of the uninsured. The presidents position would help the nations uninsured, but raise taxes on the wealthy.

In his attempt to expand the health insurance debate, Bush added a new wrinkle to his health care plan unveiled earlier this year. In that proposal, Bush called for making health insurance more affordable for many families through changes in the tax code. Meanwhile, some families with more expensive health insurance policies would see their taxes rise.

Bush's new insurance proposal would treat health insurance benefits as taxable income. Bush said, he would be "willing to discuss whether taxpayers should get a standard deduction" to compensate them, as he originally suggested, or a tax credit.

Bush's option would be more helpful to many low-income families Florida health insurance consultant Morgan Moran, of www.FloridaHealthInsuranceWeb.com speaking at a health insurance conference in Orlando said, "Bush's option would be more helpful to many low-income families" because they would get the credit even if they owe little or no income tax. However, Democrats described the president's proposal as a distraction, not a compromise.

According to a story in Forbes Magazine, "President Bush's proposal was dead on arrival five months ago. Nothing has changed," said Rep. Pete Stark, D-Calif., and chairman of the Ways and Means Health Subcommittee. "Bush is trying to use his proposal to sideline a Democratic effort to provide health coverage to millions more children."

Democrats have proposed adding $50 billion in new spending to SCHIP over five years. The president made it clear that he opposes such an expansion. His budget recommended adding $4.9 billion. He and his advisers called the coming fight over how much to expand the program a decisive moment in health care - a moment that could lead to more government-sponsored coverage or more coverage through the private sector.

"It's clear to us that the conversation needs to be not just about how we insure children with low incomes, but how we assure that every American has access to a basic, affordable plan," said Health and Human Services Secretary Mike Leavitt. Other insurance experts, like Moran said, anyone can see that all Americans need some sort of basic health insurance coverage, not just children." Bush said that as many as "20 million people would be able to afford basic insurance" through his proposal, which would provide a tax credit of $5,000 per family. Bush said. "I'm going to continue to push for new and innovative ways to help every American afford basic private health insurance."

"If the president is serious about addressing this enormous national need," said Sen. Jay Rockefeller, D-W.V.," then he will set aside partisan games and work with Congress to quickly pass the new health insurance bill.

Florida Insurance Bill Stalls - Overhaul Needed

Florida lawmakers have hit a wall on the new health insurance measure for kids. According to insurance consultant Morgan Moran, the current session will likely ignore the new health insurance plans all together, since they cannot decide who will run the new Florida health care program.

Florida lawmakers are supposed to discuss changes to (KidCare), the state's version of SCHIP, (health insurance) during the special legislative session that began last week, says Morgan Moran, a Florida health insurance consultant. Gov. Charlie Crist, a Republican (R), and other legislative leaders said a bipartisan group of lawmakers this year "introduced a proposal to streamline KidCare" but could not reach an agreement before the legislative session ended last month.

The central disagreement on the insurance bill, was over whether the Department of Health, or the Agency for Health Care Administration should run the new Florida health insurance program. Supporters of the legislation, like Moran, say the "serious differences have been resolved and lawmakers should approve the bill now" rather than wait until the fall, when the Legislature might hold an additional special session.

Health Insurance is one of the main topics for the 2008 presidential campaigns. One says he has a plan to "fix the broken down health insurance industry", and to provide coverage not only for children and the poor, but every American citizen. Presidential Candidate John Edwards' health care plan, "includes coverage for all American's" as well as a drug patent process overhaul. Edward's said "his proposal would cost $90 billion to $120 billion annually and that he would fund the plan through the elimination of tax cuts proposed by President Bush".

Florida health insurance consultant Morgan Moran of www.FloridaHealthInsuranceWeb.com said Edwards' proposal also would "require employers to provide health insurance for workers" or contribute 6% of their payrolls to a fund that would help individuals purchase coverage. More on the story is available at the Florida Health Insurance web site: Florida Health Insurance

LANTANA — A $1 million grant from the Quantum Foundation will jump start the fledgling Florida Public Health Institute on the A. G. Holley Hospital campus.

The non-profit agency, the long-time brainchild of Palm Beach Counth Health Department director Jean Malecki, aims to bring government, academic and professional groups together to deal with public health issues. The four-person institute has already held a two-week course in public health for graduate students and public health workers taught by instructors from seven universities.

The institute's aim is to deal with such issues as keeping health care workers in the county, improve ways of getting health care to the workforce and better ways of spending health care money.

The institute already claims Florida Atlantic University, the University of Miami, the county health department, Nova Southeastern University, the hospital and the town of Lantana as partners.

"We have the potential to expand as our projects grow," said Claude Earl Fox, the new executive director from the University of Miami's Miller School of Medicine.

Among projects on the institute's agenda:

• creating more federally-qualified health centers which are financed with federal money and give patients access to National Health Services Corps doctors and dentists, lower-priced presecription drugs, malpractice insurance and preferential reimbursement from federal programs
• beginning a study to see why health care workers go elsewhere and how to keep them here.
• joining with the Palm Beach County Health Care Alliance to develop a plan so everyone eligible for public health care gets it.

"Our health care system is in crisis," said County Commissioner Jeff Koons. "The institute can help us focus on the shortfalls in our system and help it work together."

Florida & Hurricanes

The 2004 and 2005 hurricanes are still howling in Florida courts.

One large insurer, Sydney, Australia-based QBE Insurance Corp., is the target of a maelstrom of litigation filed by condominium associations claiming it has stonewalled legitimate claims with the intent of forcing lowball settlements.

There are at least 21 hurricane-related suits against QBE pending in federal courts in Florida, another dozen waiting in state court to be transferred to federal court and several soon to be filed. QBE is the state's top condo association insurer.

Breach of contract lawsuits against QBE have been filed by several Florida condominiums, including Tiara Towers in Riviera Beach claiming $8 million in damages, the Village Spires in Vero Beach claiming $22 million in damages and the Chalfonte in Boca Raton with $12 million in damages.

Daniel Rosenbaum, managing shareholder of Becker & Poliakoff in West Palm Beach, Fla., which represents many condo associations, said he is handling almost 30 claims against QBE. Some have gone to litigation, such as the Chalfonte case, which is heading to trial. Others he has resolved, while some he is readying for litigation.

Rosenbaum said that from QBE's perspective, stalling equals cash, especially for a corporation that reported a 2006 net profit of almost $1.5 billion. "Everyday they hold on to their money they are making money," Rosenbaum said. "They certainly seem to fight for every dollar."

But QBE attorneys argue their client is the big victim, not QBE policyholders. QBE said it has settled most storm claims from the hurricanes in 2004 and 2005, but it is contesting the rest. It alleges massive fraud by out-of-state adjusters who gave QBE policyholders reason to expect multimillion dollar damage payouts when they were only entitled to thousands or tens of thousands of dollars in damages.

"Many claims that were presented appeared to be inflated, exaggerated and unfounded," said C. Deborah Bain, a North Palm Beach, Fla., solo attorney who is representing QBE along with William Berk of Berk Merchant & Sims in Coral Gables, Fla.

Bob Freemon of Freemon & Miller in Tampa, Fla., who represents Tiara Towers Condominium Association, disagrees. He said QBE adjusters threatened litigation from the start when condo associations make legitimate storm damage claims.

QBE then searches for differences in statements between condo board officials or residents to make a case for fraud or to deny the claim through a loophole, he said. If QBE can prove fraud, it can void the insurance policy all together, and that scares clients into taking 50 cents on the dollar, he said. That makes the condo associations' "knees buckle," Freemon said.

CONDO ASSOCIATIONS GIVE UP

QBE is the top private insurance carrier in the state for condo associations, writing windstorm damage policies for 1,707 condo associations. QBE insures $19.2 billion in property, according to state records. State Farm Insurance is second, insuring 1,131 condo associations.

Although perhaps not known as a big insurer in the United States, QBE has massive with worldwide operations. The 121-year-old company specializes in property and casualty, health, and trade credit. In Florida, the company operates through Intercoastal Underwriters in Coral Gables, which is owned by Daytona Beach, Fla.-based Brown & Brown, the seventh-largest independent insurance broker in the world.

From 2005 to 2006, complaints against QBE rose from 18 to 50, according to the state Department of Financial Services. So far there have been 17 complaints filed in 2007.

Berk, QBE's lawyer, said because his client insures sizable condo complexes, there are often large claim that allow a lot of room for dispute.

Despite QBE's fraud defense, the lawsuits continue to pile up in Florida. QBE certainly doesn't seem to be flinching in the face of the litigation.

In the one case, QBE settled a $38 million claim by Tower 1515, a 40-year condo building in West Palm Beach for just $2.2 million. The settlement was reached after a nonbinding trial in front of an advisory jury ordered by U.S. District Judge Daniel T.K. Hurley. The jury found QBE did not breach its insurance contract and that Tower 1515 had committed insurance fraud.

"My position if it's damaged by the wind, it should be paid," said Berk, who tried the case with Bain. "But with this case, we felt they were claiming things that weren't damaged by the wind and shouldn't be paid -- windows that weren't working and sliders that had already been leaking."

Paul Orshan, a partner at Duane Morris in Miami, said he and a team of lawyers are readying a lawsuit on behalf of the 600-unit Arlen House East Condominiums in Florida's Sunny Isles Beach. The condo association has filed about a $26 million claim with QBE, citing extensive wind and water damage from Hurricanes Katrina and Wilma in 2005, according to its association's president, Gustavo Miret.

QBE's delay often works because condo associations ultimately will accept the lowest possible settlement offered during mediation given that building damages are festering and loans taken to make basic repairs are coming due, Orshan said.

"These are mostly elderly people and they have had to pay thousands and thousands of their own money and their building is still in disrepair," Orshan said. "What happens is that the condominium associations get frustrated and take a settlement just to get done with it."

Robert Reynolds, a lawyer with the Merlin Group of Tampa who has filed six suits against QBE, said it's part of QBE's basic strategy not to pay the condo associations for damages that are clearly hurricane-related. "What they are doing is trying to grind down the members of these communities and that's what they do pretty much in every case," Reynolds said.

In April, Reynolds held a news conference in which he brought together about 30 condo associations and state Sen. Jeff Atwater, R-North Palm Beach, who is on the House Banking and Insurance Committee, to criticize QBE. Atwater called the situation "institutionalized bad faith."

Governor Crist's Plans

Gov. Charlie Crist has big plans to make Florida a greener state.

The governor will unveil exactly how he will increase the use of renewable energy and reduce greenhouse gas emissions during a two-day climate change summit in Miami that started Thursday.

California Gov. Arnold Schwarzenegger will also be attending the summit. He is another big-state Republican governor who is also going against the majority of his party on the issue of global warming.

"The important thing, when we talk about global warming, is that it is not any issue of either party. It is an issue that is important to all Americans, and I think that progressive Republicans are beginning to see that it is an important issue, and they're beginning to see that the environment is important to voters," said Drew Martin of the environmental organization Sierra Club.

Crist will sign three executive orders Friday to end the conference. The first will require state agencies to be more energy efficient, while the second will require power companies to reduce emissions. A third order will adopt California's strict auto emission standards.

Crist said he hopes Florida's new goals will help to persuade state and federal lawmakers to pressure polluting companies to change their practices.

Keynote speakers during the summit include Crist, Schwarzenegger, Robert F. Kennedy, Jr., co-founder of Sun Microsystems Vinod Khosla and other high-profile environmental advocates.

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