Senate Bill sb1960

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    Florida Senate - 2001                                  SB 1960

    By Senator Latvala





    19-935-01

  1                      A bill to be entitled

  2         An act relating to health care access; creating

  3         a pilot program to provide health care coverage

  4         for uninsured persons; prescribing guidelines

  5         for the program and coverage thereunder;

  6         prescribing duties of the Agency for Health

  7         Care Administration; requiring records and

  8         access to records; providing remedies for

  9         unlawful or harmful acts by health care

10         entities; providing an effective date.

11

12  Be It Enacted by the Legislature of the State of Florida:

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14         Section 1.  Health flex plans.--

15         (1)  INTENT.--The Legislature finds that a significant

16  proportion of state residents is not able to obtain affordable

17  health insurance coverage. Therefore, it is the intent of the

18  Legislature to expand the availability of health care options

19  for lower-income uninsured Floridians by encouraging health

20  insurers, health maintenance organizations, health care

21  provider-sponsored organizations, local governments, health

22  care districts, and other public or private community-based

23  organizations to develop alternative approaches to traditional

24  health insurance which emphasize coverage for basic and

25  preventative health care services. To the maximum extent

26  possible, these options should be coordinated with existing

27  governmental or community-based health services programs in a

28  manner that is consistent with the objectives and requirements

29  of such programs.

30         (2)  DEFINITIONS.--As used in this section, the term:

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    Florida Senate - 2001                                  SB 1960
    19-935-01




  1         (a)  "Agency" means the Agency for Health Care

  2  Administration.

  3         (b)  "Approved plan" means a health flex plan approved

  4  under subsection (3) which guarantees payment by the health

  5  plan entity for specified health care services provided to the

  6  enrollee. The plan may limit or exclude benefits otherwise

  7  required by law for insurers offering coverage in this state,

  8  cap the total amount of claims paid in one year per enrollee,

  9  or limit the number of enrollees covered.

10         (c)  "Enrollee" means an individual who has been

11  determined eligible for and is receiving health benefits under

12  a health flex plan approved under this section.

13         (d)  "Health care coverage" means payment for health

14  care services covered as benefits under an approved plan or

15  which otherwise provides, either directly or through

16  arrangements with other persons, covered health care services

17  on a prepaid per capita basis or on a prepaid aggregate

18  fixed-sum basis.

19         (e)  "Health plan entity" means a health insurer,

20  health maintenance organization, health care

21  provider-sponsored organization, local government, health care

22  district, or other public or private community-based

23  organization that develops and implements an approved plan and

24  is responsible for financing and paying all claims by

25  enrollees of the plan.

26         (3)  PILOT PROGRAM.--The agency, in consultation with

27  the Department of Insurance, shall approve or disapprove

28  health flex plans that provide health care coverage for

29  eligible participants residing in the three areas of the state

30  having the highest number of uninsured residents as determined

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    Florida Senate - 2001                                  SB 1960
    19-935-01




  1  by the agency. The agency may not approve, or shall withdraw

  2  approval of, plans that:

  3         (a)  Contain any ambiguous, inconsistent, or misleading

  4  provisions, or exceptions or conditions that deceptively

  5  affect or limit the benefits purported to be assumed in the

  6  general coverage provided by the plan;

  7         (b)  Provide benefits that are unreasonable in relation

  8  to the premium charged, contain provisions that are unfair or

  9  inequitable or contrary to the public policy of this state,

10  that encourage misrepresentation, or that result in unfair

11  discrimination in sales practices; or

12         (c)  Cannot demonstrate that the plan is financially

13  sound and that the applicant has the ability to underwrite or

14  finance the benefits provided.

15         (4)  LICENSE NOT REQUIRED.--A health flex plan approved

16  under this section is not subject to the licensing

17  requirements of the Florida Insurance Code or chapter 641,

18  Florida Statutes, relating to health maintenance organizations

19  unless expressly made applicable. However, for the purposes of

20  prohibiting unfair trade practices, health flex plans shall be

21  considered insurance subject to the applicable provisions of

22  part IX of chapter 626, Florida Statutes, except where in

23  conflict with the provisions of this section.

24         (5)  ELIGIBILITY.--Eligibility to enroll in an approved

25  health flex plan is limited to Florida residents who:

26         (a)  Are 64 years of age or younger;

27         (b)  Have a family income equal to or less than 200

28  percent of the federal poverty level;

29         (c)  Are not covered by a private insurance policy; are

30  not eligible for coverage through a public health insurance

31  program, such as Medicare or Medicaid, or other public health

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    Florida Senate - 2001                                  SB 1960
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  1  care program, such as KidCare; and have not been covered at

  2  any time during the proceeding 6 months; and

  3         (d)  Have applied for health care benefits through an

  4  approved health flex plan and agree to make any payments

  5  required for participation, including periodic payments or

  6  payments due at the time health care services are provided.

  7         (6)  RECORDS.--Every health option plan provider shall

  8  maintain reasonable records of its loss, expense, and claims

  9  experience and shall make such records reasonably available to

10  enable the agency to monitor and determine the financial

11  viability of the plan, as necessary.

12         (7)  NOTICE.--The denial of coverage by the health plan

13  entity, or nonrenewal or cancellation of coverage, must be

14  accompanied by the specific reasons for denial, nonrenewal, or

15  cancellation. Notice of nonrenewal or cancellation must be

16  provided at least 45 days in advance of such nonrenewal or

17  cancellation, except that 10 days' written notice need be

18  given for cancellation due to nonpayment of premiums. If the

19  health plan entity fails to give the required notice, the plan

20  shall remain in effect until notice is appropriately given.

21         (8)  NONENTITLEMENT.--Coverage under an approved health

22  plan is not an entitlement, and no cause of action shall arise

23  against the state, a local government entity or other

24  political subdivision of this state, or the agency for failure

25  to make coverage available to eligible persons under this

26  section.

27         (9)  CIVIL ACTIONS.--In addition to an administrative

28  action initiated under section (4), the agency may seek any

29  remedy provided by law, including, but not limited to, the

30  remedies provided in section 812.035, Florida Statutes, if the

31  agency finds that a health plan entity has engaged in any act

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    Florida Senate - 2001                                  SB 1960
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  1  resulting in injury to an enrollee covered by a plan approved

  2  under this section.

  3         Section 2.  This act shall take effect July 1, 2001.

  4

  5            *****************************************

  6                          SENATE SUMMARY

  7    Creates a pilot program, designated health flex plans, to
      provide health care coverage for uninsured persons under
  8    the oversight of the Agency for Health Care
      Administration. (See bill for details.)
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