Florida's lawmakers must address lawsuit abuse

The other major reason for misrepresented medical costs here in Florida is that plaintiffs' lawyers are allowed to create special agreements with medical providers called "letters of protection." Basically, a letter of protection is a promise from the medical care provider to delay collecting payment until a lawsuit is over.

Since Hurricane Ian and Nicole targeted Florida, the state's leading lawmakers have professed the need to tackle the property insurance crisis.

But while handling roofing fraud and other similar issues are important, it really should be only the tip of the legal reform iceberg for Florida's lawmakers when they convene during the 2023 regular session.

One of the long-standing legal loopholes that has plagued Florida's courtrooms is our lack of "transparency in damages." For those who are not familiar with the term, our judges and courts in Florida are notorious for handing out massively inflated damage awards to personal injury claimants. But the problem doesn't stem from judges and juries – it is directly caused by dubious trial lawyer tactics that shield actual costs.

Medical damages are often misrepresented when they are presented to Florida juries, and for a few different reasons. When a jury calculates the total damages that should be awarded to a plaintiff, they are only allowed to see what a doctor has billed a patient. This standard can mislead juries to think that the costs of treatment are higher than their actual value. Why? Because doctors often bill for a higher amount than what they are willing to accept – or the actual amount that a patient eventually pays after their insurer has negotiated with a medical care provider.

The other major reason for misrepresented medical costs here in Florida is that plaintiffs' lawyers are allowed to create special agreements with medical providers called "letters of protection." Basically, a letter of protection is a promise from the medical care provider to delay collecting payment until a lawsuit is over. This encourages doctors to sign on earlier in hopes for larger payouts in the end. In reality, a letter of protection essentially eliminates the possibility of presenting the actual amount that a doctor would be willing to accept.

This has been wreaking havoc on jury verdicts, and it is resulting in skyrocketing insurance premiums for small businesses and consumers. In addition to inflating jury verdicts in Florida, it has also likely incentivized additional bad actors to push for unnecessary medical tests and treatments that jack up final medical bills.

All of this has led to significant losses for insurers, the businesses they insure and the consumers who see increased prices on everything from health insurance to basic goods like groceries and gasoline. No one is spared. We all are on the hook for paying the bill. Rich or poor, we are all in it together.

While no single legislative package can fix everything, our lawmakers need to start somewhere to bring transparency back to consumers. If successful reforms can be implemented soon, they could make a noticeable and positive difference for residents by the time Florida enters the 2023 hurricane and 2024 insurance renewal seasons.

Transparency in damages and other types of lawsuit abuse are causing real harm to Florida, and our Legislature has missed too many previous opportunities to fix this problem. It is time for our lawmakers to address lawsuit reform, so let's hope that the new class of legislators will make it a high priority.

Tom Gaitens is the executive director of Florida Citizens Against Lawsuit Abuse.

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Tom Gaitens

Guest columnist

The other major reason for misrepresented medical costs here in Florida is that plaintiffs' lawyers are allowed to create special agreements with medical providers called "letters of protection." Basically, a letter of protection is a promise from the medical care provider to delay collecting payment until a lawsuit is over.