GEICO Indemnity Co. v. Physicians Group, LLC
47 So. 3d 354
Fla. Dist. Ct. App.2010Background
- GEICO Indemnity sought discretionary review of a county court final declaratory judgment favoring Physicians Group regarding payment of medical bills under PIP.
- Androski, GEICO's insured, had a 2006 policy term (August 23, 2006–February 23, 2007) and received treatment from Physicians Group beginning January 24, 2007, with an assignment to Physicians Group on that date.
- The 2006 PIP statute required insurers to pay 80% of reasonable expenses for medically necessary services; GEICO paid 80% of the 2007 billed amounts to Physicians Group.
- On January 1, 2008, the new PIP law took effect, introducing a potentially lower reimbursement method for nonemergency, nonhospital services under § 627.736(5)(a)(2)(f).
- GEICO paid under the 2008 formula for a January 7, 2008 arthroscopic procedure; Physicians Group sued for declaratory relief contending retroactive application was improper.
- The county court held the 2008 statute did not apply retroactively to a policy issued before the statute's effective date; the issue certified as one of great public importance.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Retroactivity of the 2008 PIP law | GEICO argues retroactive application is allowed to pre-2008 policies. | Physicians Group contends the 2008 law should apply to all claims after effective date if policy in effect on that date. | 2008 PIP does not retroactively apply to the policy; affirmed. |
Key Cases Cited
- Hassen v. State Farm Mut. Auto. Ins. Co., 674 So.2d 106 (Fla. 1996) (substantive retroactivity requires clear legislative intent)
- Menendez v. Progressive Express Insurance Co., 35 So.3d 873 (Fla. 2010) (two-part retroactivity test (intent and constitutional) outlined)
- Metro. Dade Cnty. v. Chase Fed. Hous. Corp., 737 So.2d 494 (Fla. 1999) (retroactivity analysis framework)
- Arrow Air, Inc. v. Walsh, 645 So.2d 422 (Fla. 1994) (clear legislative intent required for retroactivity)
- Landgraf v. USI Film Prods., 511 U.S. 244 (U.S. 1994) (federal retroactivity framework applied by Florida courts)