HB 1101

1	A bill to be entitled
2	An act relating to health insurance; providing a short
3	title; providing a definition; authorizing an employee of
4	a corporation that employs a specified number of employees
5	to participate in the state group health insurance plan;
6	providing conditions for eligibility to participate in the
7	state group health insurance plan; authorizing a state
8	resident to participate in the state group health
9	insurance plan under certain conditions; requiring certain
10	premium payments to be made electronically; requiring a
11	corporation to apply for participation in the state group
12	health insurance plan; requiring a corporation to agree to
13	specified terms and conditions before participating in the
14	plan; providing for open enrollment in the state group
15	health insurance plan for eligible corporate employees and
16	state residents; providing a corporate income tax credit
17	to corporations participating in the plan for a specified
18	percentage of contributions made towards employee
19	premiums; limiting the total amount of tax credits
20	available to all eligible corporations to a specified
21	amount; authorizing the Department of Management Services
22	to adopt rules for the implementation and administration
23	of the act; authorizing the Department of Revenue to adopt
24	rules for implementing the act and allocating tax credits;
25	creating s. 625.083, F.S.; requiring financial reports of
26	certain health insurers to be reported on a combined
27	corporate basis; providing an effective date.
28
29	Be It Enacted by the Legislature of the State of Florida:
30
31	Section 1.  Short title.-Sections 2 through 7 of this act
32	may be cited as the "Middle Class and Small Business Free to
33	Choose Act."
34	Section 2.  Eligibility to participate in the state group
35	health insurance plan.-
36	(1)  For purposes of this section, the term "total premium
37	cost of the plan" means the sum of the state's contribution
38	towards the premium for a state employee's participation in a
39	state group health insurance plan and the state employee's
40	premium payment for participation in the plan.
41	(2)  An employee of any business employing fewer than 25
42	employees that is duly incorporated under the laws of this state
43	is eligible to participate in the state group health insurance
44	plan as defined in s. 110.123, Florida Statues, under the
45	following conditions:
46	(a)  The corporation employing the employee must pay at
47	least the same contribution towards the premium for each
48	employee who enrolls in the plan as the state pays towards the
49	premium for a state employee who enrolls in the same plan.
50	(b)  Each employee of the corporation who enrolls in the
51	plan must pay the difference between the corporation's
52	contribution to the plan and the total premium cost of the plan.
53	(c)  An employee of the corporation may enroll only in a
54	plan available to a state employee employed in the same
55	locality.
56	(3)  Any state resident is eligible to participate in the
57	state group health insurance plan as defined in s. 110.123,
58	Florida Statutes, and may enroll in any plan available to a
59	state employee residing in the same locality if such state
60	resident agrees to pay the total premium cost of the plan.
61	(4)  All corporate contributions towards a premium and all
62	payments for the cost of a premium made by a corporate employee
63	or state resident enrolling in a state group health insurance
64	plan must be remitted electronically to the Department of
65	Management Services.
66	Section 3.  Participation by a corporation in the state
67	group health insurance plan.-
68	(1)  The board of directors of a corporation eligible for
69	participation in the state group health insurance plan under
70	section 2 may apply for participation in the plan by submitting
71	an application to the Department of Management Services.
72	(2)  If the Department of Management Services determines
73	that the corporation is eligible to participate in the state
74	group health insurance plan, the corporation must agree to the
75	following terms and conditions:
76	(a)  The minimum enrollment or contractual period is 3
77	years.
78	(b)  Termination of participation in the plan by the
79	corporation requires written notice 1 year before the
80	termination date.
81	(c)  If participation in the plan is terminated, the
82	corporation may not reapply for participation in the plan for a
83	period of at least 2 years.
84	(d)  The corporation must reimburse the state for 100
85	percent of the state's costs, including administrative costs.
86	(e)  The corporation must furnish the Department of
87	Management Services with any information requested by the
88	department which the department considers necessary to
89	administer the state group health insurance plan for the
90	employees of the corporation.
91	Section 4.  Open enrollment period for eligible corporate
92	employees and state residents.-On or before January 1, 2012, the
93	Department of Management Services must provide for an open
94	enrollment period of not less than 45 days for eligible
95	corporate employees or state residents who want to obtain the
96	health insurance coverage provided under this act. The options
97	offered during the open enrollment period must provide the same
98	health insurance coverage as the coverage provided for active
99	state employees under the premium payment conditions specified
100	in section 2.
101	Section 5.  The Department of Management Services may adopt
102	rules for the implementation and administration of this act.
103	Section 6.  Tax credit for corporate contributions towards
104	employee health insurance premiums.-
105	(1)  A corporation whose employees are eligible to
106	participate in the state group health insurance plan under this
107	act is eligible for a credit against the corporate income tax
108	imposed under chapter 220, Florida Statutes, in an amount equal
109	to 50 percent of the total amount contributed in the calendar
110	year towards payment of premiums for its employees who are
111	enrolled in a state group health insurance plan.
112	(2)  The combined total amount of tax credits that may be
113	granted and approved for all eligible corporations under this
114	section during any calendar year is $250 million. Applications
115	must be filed with the Department of Revenue for contributions
116	made in the preceding calendar year, and credits must be granted
117	in the order in which completed applications are received. If
118	the combined total amount of available credits is exceeded in
119	any calendar year, credits otherwise available under this
120	section may be taken by a corporation only if the corporation's
121	application has already been granted and approved.
122	Section 7.  The Department of Revenue may adopt rules for
123	the purpose of implementing this act and allocating the tax
124	credits provided in this act to corporations contributing
125	towards the cost of their employees' health insurance premiums.
126	Section 8.  Section 625.083, Florida Statutes, is created
127	to read:
128	625.083  Financial reports; health insurers.-A financial
129	report of any health insurer who is required to file such report
130	under the insurance code, including any financial report filed
131	for the purpose of determining the financial condition of the
132	health insurer, must report the health insurer's finances on a
133	combined corporate basis that includes any and all subsidiaries
134	of the health insurer.
135	Section 9.  This act shall take effect July 1, 2011.

CODING: Words stricken are deletions; words underlined are additions.