With a broad stroke and his trademark flourish, Gov. Charlie Crist signed Senate Bill 1122 into law last month.

 

The controversial legislation, which attracted a firestorm of opposition from consumer groups in the days before the signing, requires insurers to honor a patient's assignment of benefits and pay the physician directly, rather than routing it through the patient.

 

In a letter sent to Secretary of State Kurt Browning on June 10, Crist said he signed the bill for several reasons.

 

"The bill makes a significant change to the payment relationship between a health insurance carrier and out-of-network providers," he wrote. "All too often, out-of-network providers that care for individuals insured by preferred provider organization networks aren't reimbursed for their services under the existing payment structure. For this reason, many providers are reluctant to care for out-of-network individuals, thus reducing access to healthcare. As a result, individuals may not get the opportunity to see the provider of their choice."

 

Crist said he was pleased the legislation removes a healthcare access barrier that has hindered a provider's right to receive payment for rendering services.

 

"Currently, insured individuals receive the payment directly from their health insurance carrier and don't always pay the provider for the care they have received," he said. "This legislation allows direct payment for services rendered by out-of-network providers, thus reducing fraud and preventing misuse of insurance benefits."

 

The legislation took effect July 1.

 

Bruce Rueben, president of the Florida Hospital Association, said the new law "isn't about helping hospitals. It's about helping people with health insurance with services out of network. It's about allowing them to have a more trouble-free way to make sure their medical bills are paid. As someone who in the past has gone out of network for hospital and physician services, I know what it's like to get bill after bill after bill in the mail, and then every so often get a check from the insurance company. And then you have to sort through all that, and pay everyone. This is a step that makes it more clear-cut and simple for the patient and the provider."

 

Two versions of the "assignment of benefits" bill had been introduced early in the 2009 legislative session. By early April, the House version (HB 855) had sailed through its second committee of reference, the House General Government Policy Council, with a 17-0 vote, before moving to the Government Operations Appropriations Committee. The Senate companion bill, Sen. Don Gaetz's SB 1122, easily passed through the Senate Banking and Insurance Committee before ultimately being the "assignment of benefits" legislation passed by state lawmakers.

 

After the bill was presented to Crist for his approval, opposition mounted from various consumer advocacy groups, whom some say were being funded through Blue Cross Blue Shield of Florida, which vehemently had opposed the bill. On May 19, a broad coalition of consumer groups warned that Floridians would be punished with rising healthcare costs and unexpected out-of-pocket fees if the governor signed SB 1122. Five groups--The Associated Industries of Florida; Council 79 of the American Federation of State, County and Municipal Employees; Florida PIRG; the Florida Alliance for Retired Americans; and the Consumer Federation of the Southeast--called on Crist to veto the measure to prevent the bill from undermining Florida's PPO networks and increasing healthcare costs for Florida employers, workers and consumers.

 

"Like all good stories, this one has a happy ending," said Steven West, MD, president of the Florida Medical Association. "The good guys win."

 

Melanie Boscan, executive director of the Orange County Medical Society, said the hard-fought battle won on June 10 was "a victory for physicians and patients in Florida and a true testament to the effectiveness of organized medicine."

 

Carrie Pope, executive director of the Seminole County Medical Society, said the governor's signing of SB 1122 "sent a message to Floridians that he's committed to ensuring patients have a choice in their provider. This is a great example of what organized medicine can do for patients and physicians."