Florida Makes Changes to Lawsuits for Big Payments for Injured People and Their Lawyers

1. House Bill 837 was signed by Florida Governor Ron DeSantis to decrease frivolous lawsuits and prevent predatory practices of trial attorneys.
2. A record number of 280,122 cases were filed in March 2023, 126.9% higher than the previous record set in May 2021.
3. The bill repeals section 627.428, Florida Statutes, which provided for attorneys’ fees for plaintiffs who prevail in an action to recover benefits from an insurance carrier.
4. The repeal of section 627.428 is expected to reduce unnecessary litigation.
5. House Bill 837 also provides transparency regarding the cost of medical services provided to patients under a letter of protection.
6. A letter of protection is a written agreement between a patient and a medical provider where the provider defers collection on its charges in return for a lien on the proceeds of the patient’s future liability claim. – Letters of protection are based on providers’ chargemaster prices, which are often much higher than what the provider would accept from a health care insurer.
– Medical providers often require patients to forego benefits from their private health insurance or government programs, allowing the providers to bill at excessive rates.
– House Bill 837 requires the disclosure of a letter of protection as a condition for claiming medical expenses in a personal injury or wrongful death suit. 1. Evidence of the amount the claimant’s health insurance would have paid the provider and the claimant’s share of medical expenses under the contract/regulation is admissible for past, but unpaid, medical bills.
2. Evidence of the amount a third party paid or agreed to pay the health care provider for treatment under a letter of protection is admissible.
3. Defendants are now entitled to discover whether the plaintiff was referred to his or her medical providers by an attorney.

Florida Litigation Reforms Target Damage Windfalls for Plaintiffs—and Their Lawyers