Florida’s Capitol, Jan. 6, 2021. (Photo by Michael Moline/Florida Phoenix)
Chief Financial Officer Jimmy Patronis responded Wednesday to reporting that insurance companies in the state used “financial workarounds” to hold onto billions of dollars while claiming to face financial hardship, saying that policy changes may be coming.
The Tampa Bay Times and Miami Herald reported on a 2022 state-commissioned study, previously not public, that found insurance companies violated state regulations when distributing dividends to shareholders while pleading poverty.
Patronis, who sits on the Florida Cabinet board overseeing the Office of Insurance Regulation, commented following his final meeting as a member of the Cabinet, which runs various state agencies in partnership with the governor.
The CFO is the GOP nominee in the special election on April 1 for the heavily Republican CD 1 seat vacated by former Rep. Matt Gaetz.
“I think probably some of it was misinterpreted, I think some of it was legal, some of it probably was maybe not inappropriate,” Patronis told reporters.
“But in the eyes of John Q. Public, with what they’ve been going through, they probably feel it’s highly inappropriate. So again, we may end up changing policy. What may be standard operating procedure, but in the eyes of the public, considering what they’re going through, is not something that’s going to be the norm moving forward.”
The agency withheld the report from the public and Legislature because its information was classified as a trade secret, Patronis said, adding that some things are kept out of the public “in order for them to be efficient and make a profit.”
“I appreciate what has been brought to light. Definitely concerned about not the full transparency that you would hope would exist at every one of our state agencies, but I appreciate the concerns that the leader of the Florida House of Representatives wants to take in this issue, and transparency is the best disinfectant,” Patronis said.
Investigation planned
House Speaker Daniel Perez responded to the reporting as the Legislature opened its regular session Tuesday and said the chamber would investigate using subpoenas and placing witnesses under oath. Insurers had been complaining about their claims burdens while persuading the Legislature to make it harder to pursue claims litigation against them.
“If there’s nothing to hide, then we should have nothing to worry about, but we’re going to have some inquiries, questions will be asked, and there’ll may be even some change in policies directly because of it, and now’s the time to do it because [of the legislative session],” Patronis said.
He said the insurance industry “is kind of becoming” a regulated monopoly.
“But at the end of the day, you’ve got to count on your regulators, to be able to delve into those things and sometimes ask the type of questions, or maybe even propose the type of legislative changes that may not necessarily be in the best interest of whose being regulated, but it’s definitely in the best interest of all those that are affected by the decisions that are being made,” Patronis said.
The departing CFO responded to conversations in the Florida Capitol about repealing property taxes, which would make Florida the only state without the tax. Some lawmakers and the governor have floated the idea of a constitutional amendment to repeal the tax that local governments and school districts rely upon.
Patronis predicted voters would eliminate property taxes “90 to nothing.”
“The only people that will be voting against it will be those that will have to figure out how to make up the loss of funding,” Patronis said.
Governor’s race
Reporters asked Patronis about Florida’s next gubernatorial election in November 2026.
“Eighteen months is a long time in this process,” Patronis said, noting that Rick Scott entered the 2010 gubernatorial race less than a year before the election. Similarly, in 2018 President Donald Trump in 2018 “cleared the field” for Ron DeSantis with a “couple of tweets” in his support.
When asked about Casey DeSantis, whom Gov. DeSantis has been floating for the governorship, Patronis called her a rockstar and said she would make an “outstanding public servant.”
GET THE MORNING HEADLINES.