Florida Senate - 2017                                     SB 430
       By Senator Bean
       4-00513A-17                                            2017430__
    1                        A bill to be entitled                      
    2         An act relating to discount plan organizations;
    3         revising the titles of ch. 636, F.S., and part II of
    4         ch. 636, F.S.; amending s. 636.202, F.S.; revising
    5         definitions; amending s. 636.204, F.S.; conforming
    6         provisions to changes made by the act; requiring a
    7         provider to be licensed as a discount plan
    8         organization if the provider charges patients fees,
    9         dues, charges, or other consideration to receive
   10         discounted medical services; amending s. 636.208,
   11         F.S.; conforming provisions to changes made by the
   12         act; revising a specified condition for a member to
   13         receive a reimbursement of certain charges after
   14         cancelling a membership in a discount plan
   15         organization; amending s. 636.212, F.S.; conforming
   16         provisions to changes made by the act; specifying what
   17         a first page is for the purpose of a disclosure
   18         requirement on certain materials relating to a
   19         discount plan; providing for construction; deleting
   20         certain requirements that apply if the initial
   21         contract is made by telephone; amending s. 636.214,
   22         F.S.; making a technical change; conforming provisions
   23         to changes made by the act; amending s. 636.216, F.S.;
   24         deleting a provision that requires filing charges to
   25         members with the Office of Insurance Regulation, that
   26         requires approval of the office for specified charges,
   27         and that provides for the burden of proving the
   28         reasonable relation of charges to benefits received by
   29         the members; conforming provisions to changes made by
   30         the act; specifying certain forms that must be filed
   31         and approved by the office; providing an exception
   32         from approval by the office; specifying what is not
   33         included in a material change; amending s. 636.228,
   34         F.S.; conforming provisions to changes made by the
   35         act; authorizing a discount plan organization to
   36         delegate functions to its marketers; providing that
   37         the discount plan organization is bound to acts of its
   38         marketers within the scope of delegation; amending s.
   39         636.230, F.S.; conforming provisions to changes made
   40         by the act; authorizing a marketer or discount plan
   41         organization to commingle certain products on a single
   42         page of certain documents; providing for
   43         applicability; deleting a requirement for discount
   44         medical plan fees to be provided in writing under
   45         certain circumstances; amending ss. 408.9091, 408.910,
   46         627.64731, 636.003, 636.205, 636.206, 636.207,
   47         636.210, 636.218, 636.220, 636.222, 636.223, 636.224,
   48         636.226, 636.232, 636.234, 636.236, 636.238, 636.240,
   49         and 636.244, F.S.; conforming provisions to changes
   50         made by the act; providing an effective date.
   52  Be It Enacted by the Legislature of the State of Florida:
   54         Section 1. Chapter 636, Florida Statutes, entitled “Prepaid
   55  Limited Health Service Organizations and Discount Medical Plan
   56  Organizations,” is retitled “Prepaid Limited Health Service
   57  Organizations and Discount Plan Organizations.”
   58         Section 2. Part II of chapter 636, Florida Statutes,
   59  entitled “Discount Medical Plan Organizations,” is retitled
   60  “Discount Plan Organizations.”
   61         Section 3. Section 636.202, Florida Statutes, is amended to
   62  read:
   63         636.202 Definitions.—As used in this part, the term:
   64         (1) “Discount medical plan” means a business arrangement or
   65  contract in which a person, in exchange for fees, dues, charges,
   66  or other consideration, provides access for plan members to
   67  providers of medical services and the right to receive medical
   68  services from those providers at a discount. The term “discount
   69  medical plan” does not include any product regulated under
   70  chapter 627, chapter 641, or part I of this chapter;, or any
   71  medical services provided through a telecommunications medium
   72  that does not offer a discount to the plan member for those
   73  medical services; or any plan that does not charge a fee to plan
   74  members. Until June 30, 2018, a discount plan may also be
   75  referred to as a discount medical plan.
   76         (2) “Discount medical plan organization” means an entity
   77  that which, in exchange for fees, dues, charges, or other
   78  consideration, provides access for plan members to providers of
   79  medical services and the right to receive medical services from
   80  those providers at a discount. Until June 30, 2018, a discount
   81  plan organization may also be referred to as a discount medical
   82  plan organization.
   83         (3) “Marketer” means a person or entity that which markets,
   84  promotes, sells, or distributes a discount medical plan,
   85  including a private label entity that which places its name on
   86  and markets or distributes a discount medical plan but does not
   87  operate a discount medical plan.
   88         (4) “Medical services” means any care, service, or
   89  treatment of illness or dysfunction of, or injury to, the human
   90  body, including, but not limited to, physician care, inpatient
   91  care, hospital surgical services, emergency services, ambulance
   92  services, dental care services, vision care services, mental
   93  health services, substance abuse services, chiropractic
   94  services, podiatric care services, laboratory services, and
   95  medical equipment and supplies. The term does not include
   96  pharmaceutical supplies or prescriptions.
   97         (5) “Member” means any person who pays fees, dues, charges,
   98  or other consideration for the right to receive the purported
   99  benefits of a discount medical plan.
  100         (6) “Provider” means any person or institution that which
  101  is contracted, directly or indirectly, with a discount medical
  102  plan organization to provide medical services to members.
  103         (7) “Provider network” means an entity that which
  104  negotiates on behalf of more than one provider with a discount
  105  medical plan organization to provide medical services to
  106  members.
  107         Section 4. Subsections (1), (2), (4), and (6) of section
  108  636.204, Florida Statutes, are amended to read:
  109         636.204 License required.—
  110         (1) Before doing business in this state as a discount
  111  medical plan organization, an entity must be a corporation, a
  112  limited liability company, or a limited partnership,
  113  incorporated, organized, formed, or registered under the laws of
  114  this state or authorized to transact business in this state in
  115  accordance with chapter 605, part I of chapter 607, chapter 617,
  116  chapter 620, or chapter 865, and must be licensed by the office
  117  as a discount medical plan organization or be licensed by the
  118  office pursuant to chapter 624, part I of this chapter, or
  119  chapter 641.
  120         (2) An application for a license to operate as a discount
  121  medical plan organization must be filed with the office on a
  122  form prescribed by the commission. Such application must be
  123  sworn to by an officer or authorized representative of the
  124  applicant and be accompanied by the following, if applicable:
  125         (a) A copy of the applicant’s articles of incorporation or
  126  other organizing documents, including all amendments.
  127         (b) A copy of the applicant’s bylaws.
  128         (c) A list of the names, addresses, official positions, and
  129  biographical information of the individuals who are responsible
  130  for conducting the applicant’s affairs, including, but not
  131  limited to, all members of the board of directors, board of
  132  trustees, executive committee, or other governing board or
  133  committee, the officers, contracted management company
  134  personnel, and any person or entity owning or having the right
  135  to acquire 10 percent or more of the voting securities of the
  136  applicant. Such listing must fully disclose the extent and
  137  nature of any contracts or arrangements between any individual
  138  who is responsible for conducting the applicant’s affairs and
  139  the discount medical plan organization, including any possible
  140  conflicts of interest.
  141         (d) A complete biographical statement, on forms prescribed
  142  by the commission, an independent investigation report, and a
  143  set of fingerprints, as provided in chapter 624, with respect to
  144  each individual identified under paragraph (c).
  145         (e) A statement generally describing the applicant, its
  146  facilities and personnel, and the medical services to be
  147  offered.
  148         (f) A copy of the form of all contracts made or to be made
  149  between the applicant and any providers or provider networks
  150  regarding the provision of medical services to members.
  151         (g) A copy of the form of any contract made or arrangement
  152  to be made between the applicant and any person listed in
  153  paragraph (c).
  154         (h) A copy of the form of any contract made or to be made
  155  between the applicant and any person, corporation, partnership,
  156  or other entity for the performance on the applicant’s behalf of
  157  any function, including, but not limited to, marketing,
  158  administration, enrollment, investment management, and
  159  subcontracting for the provision of health services to members.
  160         (i) A copy of the applicant’s most recent financial
  161  statements audited by an independent certified public
  162  accountant. An applicant that is a subsidiary of a parent entity
  163  that is publicly traded and that prepares audited financial
  164  statements reflecting the consolidated operations of the parent
  165  entity and the subsidiary may petition the office to accept, in
  166  lieu of the audited financial statement of the applicant, the
  167  audited financial statement of the parent entity and a written
  168  guaranty by the parent entity that the minimum capital
  169  requirements of the applicant required by this part will be met
  170  by the parent entity.
  171         (j) A description of the proposed method of marketing.
  172         (k) A description of the subscriber complaint procedures to
  173  be established and maintained.
  174         (l) The fee for issuance of a license.
  175         (m) Such other information as the commission or office may
  176  reasonably require to make the determinations required by this
  177  part.
  178         (4) Before Prior to licensure by the office, each discount
  179  medical plan organization must establish an Internet website so
  180  as to conform to the requirements of s. 636.226.
  181         (6) This part does not require Nothing in this part
  182  requires a provider who provides discounts to his or her own
  183  patients to obtain and maintain a license as a discount medical
  184  plan organization unless the provider charges patients fees,
  185  dues, charges, or other consideration to receive medical
  186  services from the provider at a discount.
  187         Section 5. Section 636.208, Florida Statutes, is amended to
  188  read:
  189         636.208 Fees; charges; reimbursement.—
  190         (1) A discount medical plan organization may charge a
  191  periodic charge as well as a reasonable one-time processing fee
  192  for a discount medical plan.
  193         (2) If the member cancels his or her membership in the
  194  discount medical plan organization within the first 30 days
  195  after the effective date of enrollment in the plan or cancels
  196  his or her membership consistent with the open enrollment rules
  197  established by an employer or association for a plan having an
  198  open enrollment period, the member shall receive a reimbursement
  199  of all periodic charges upon return of the discount card to the
  200  discount medical plan organization.
  201         (3) If the discount medical plan organization cancels a
  202  membership for any reason other than nonpayment of fees by the
  203  member, the discount medical plan organization must shall make a
  204  pro rata reimbursement of all periodic charges to the member.
  205         (4) In addition to the reimbursement of periodic charges
  206  for the reasons stated in subsections (2) and (3), a discount
  207  medical plan organization shall also reimburse the member for
  208  any portion of a one-time processing fee that exceeds $30 per
  209  year.
  210         Section 6. Section 636.212, Florida Statutes, is amended to
  211  read:
  212         636.212 Disclosures.—The following disclosures must be made
  213  in writing to any prospective member and must be on the first
  214  page of any advertisements, marketing materials, or brochures
  215  relating to a discount medical plan. The first page is the page
  216  that first includes the information describing benefits. The
  217  disclosures must be printed in not less than 12-point type:
  218         (1) That the plan is not insurance.
  219         (2) That the plan provides discounts at certain health care
  220  providers for medical services.
  221         (3) That the plan does not make payments directly to the
  222  providers of medical services.
  223         (4) That the plan member is obligated to pay for all health
  224  care services but will receive a discount from those health care
  225  providers who have contracted with the discount plan
  226  organization.
  227         (5) The name and address of the licensed discount medical
  228  plan organization.
  230  The requirements of this section are met if the prospective
  231  member cannot enroll without being presented with the required
  232  disclosures and if the prospective member must acknowledge
  233  acceptance of the plan terms and conditions before enrollment.
  234  This section does not prohibit the discount plan organization
  235  from making additional disclosures to a prospective member If
  236  the initial contract is made by telephone, the disclosures
  237  required by this section shall be made orally and provided in
  238  the initial written materials that describe the benefits under
  239  the discount medical plan provided to the prospective or new
  240  member.
  241         Section 7. Section 636.214, Florida Statutes, is amended to
  242  read:
  243         636.214 Provider agreements.—
  244         (1) All providers offering medical services to members
  245  under a discount medical plan must provide such services
  246  pursuant to a written agreement. The agreement may be entered
  247  into directly by the provider or by a provider network to which
  248  the provider belongs.
  249         (2) A provider agreement between a discount medical plan
  250  organization and a provider must provide the following:
  251         (a) A list of the services and products to be provided at a
  252  discount.
  253         (b) The amount or amounts of the discounts or,
  254  alternatively, a fee schedule which reflects the provider’s
  255  discounted rates.
  256         (c) A statement that the provider will not charge members
  257  more than the discounted rates.
  258         (3) A provider agreement between a discount medical plan
  259  organization and a provider network must shall require that the
  260  provider network have written agreements with its providers
  261  which:
  262         (a) Contain the terms described in subsection (2).
  263         (b) Authorize the provider network to contract with the
  264  discount medical plan organization on behalf of the provider.
  265         (c) Require the network to maintain an up-to-date list of
  266  its contracted providers and to provide that list on a monthly
  267  basis to the discount medical plan organization.
  268         (4) The discount medical plan organization shall maintain a
  269  copy of each active provider agreement into which it has
  270  entered.
  271         Section 8. Section 636.216, Florida Statutes, is amended to
  272  read:
  273         636.216 Charge or Form filings.—
  274         (1) All charges to members must be filed with the office
  275  and any charge to members greater than $30 per month or $360 per
  276  year must be approved by the office before the charges can be
  277  used. The discount medical plan organization has the burden of
  278  proof that the charges bear a reasonable relation to the
  279  benefits received by the member.
  280         (2) There must be a written agreement between the discount
  281  medical plan organization and the member specifying the benefits
  282  under the discount medical plan and complying with the
  283  disclosure requirements of this part.
  284         (2)(3)All forms used, including The written agreement
  285  pursuant to subsection (1) (2), membership applications, and
  286  fulfillment materials that describe medical services as defined
  287  in this part must first be filed with and approved by the
  288  office. Every form filed shall be identified by a unique form
  289  number placed in the lower left corner of each form. A form
  290  previously approved by the office is not required to be approved
  291  unless the form is materially changed. For purposes of this
  292  subsection, a material change does not include a change in
  293  charges, a change to the name of the marketer or entity
  294  distributing the plan, the deletion of benefits, or the addition
  295  of benefits that are not medical services as defined in this
  296  part.
  297         (3)(4) A charge or form is considered approved on the 60th
  298  day after its date of filing unless it has been previously
  299  disapproved by the office. The office shall disapprove any form
  300  that does not meet the requirements of this part or that is
  301  unreasonable, discriminatory, misleading, or unfair. If such
  302  filings are disapproved, the office must shall notify the
  303  discount medical plan organization and must shall specify in the
  304  notice the reasons for disapproval.
  305         Section 9. Section 636.228, Florida Statutes, is amended to
  306  read:
  307         636.228 Marketing of discount medical plans.—
  308         (1) All advertisements, marketing materials, brochures, and
  309  discount cards used by marketers must be approved in writing for
  310  such use by the discount medical plan organization.
  311         (2) The discount medical plan organization must shall have
  312  an executed written agreement with a marketer before prior to
  313  the marketer’s marketing, promoting, selling, or distributing
  314  the discount medical plan. Such agreement must shall prohibit
  315  the marketer from using marketing materials, brochures, and
  316  discount cards without the approval in writing by the discount
  317  medical plan organization. The discount medical plan
  318  organization may delegate functions to its marketers but shall
  319  be bound by any acts of its marketers, within the scope of the
  320  delegation, which marketers’ agency, that do not comply with the
  321  provisions of this part.
  322         Section 10. Section 636.230, Florida Statutes, is amended
  323  to read:
  324         636.230 Bundling discount medical plans with other
  325  products.—A marketer or discount plan organization selling a
  326  discount plan with medical services and other services may
  327  commingle those products on a single page of forms,
  328  advertisements, marketing materials, or brochures. The office’s
  329  approval of forms only pertains to the medical services
  330  regulated by this part When a marketer or discount medical plan
  331  organization sells a discount medical plan together with any
  332  other product, the fees for the discount medical plan must be
  333  provided in writing to the member if the fees exceed $30.
  334         Section 11. Paragraph (b) of subsection (5) of section
  335  408.9091, Florida Statutes, is amended to read:
  336         408.9091 Cover Florida Health Care Access Program.—
  337         (5) PLAN PROPOSALS.—The agency and the office shall
  338  announce, no later than July 1, 2008, an invitation to negotiate
  339  for Cover Florida plan entities to design a Cover Florida plan
  340  proposal in which benefits and premiums are specified.
  341         (b) The agency and the office may announce an invitation to
  342  negotiate for the design of Cover Florida Plus products to
  343  companies that offer supplemental insurance, discount medical
  344  plan organizations licensed under part II of chapter 636, or
  345  prepaid health clinics licensed under part II of chapter 641.
  346         Section 12. Paragraph (d) of subsection (2) and paragraph
  347  (d) of subsection (4) of section 408.910, Florida Statutes, are
  348  amended to read:
  349         408.910 Florida Health Choices Program.—
  350         (2) DEFINITIONS.—As used in this section, the term:
  351         (d) “Insurer” means an entity licensed under chapter 624
  352  which offers an individual health insurance policy or a group
  353  health insurance policy, a preferred provider organization as
  354  defined in s. 627.6471, an exclusive provider organization as
  355  defined in s. 627.6472, or a health maintenance organization
  356  licensed under part I of chapter 641, or a prepaid limited
  357  health service organization or discount medical plan
  358  organization licensed under chapter 636.
  359         (4) ELIGIBILITY AND PARTICIPATION.—Participation in the
  360  program is voluntary and shall be available to employers,
  361  individuals, vendors, and health insurance agents as specified
  362  in this subsection.
  363         (d) All eligible vendors who choose to participate and the
  364  products and services that the vendors are permitted to sell are
  365  as follows:
  366         1. Insurers licensed under chapter 624 may sell health
  367  insurance policies, limited benefit policies, other risk-bearing
  368  coverage, and other products or services.
  369         2. Health maintenance organizations licensed under part I
  370  of chapter 641 may sell health maintenance contracts, limited
  371  benefit policies, other risk-bearing products, and other
  372  products or services.
  373         3. Prepaid limited health service organizations may sell
  374  products and services as authorized under part I of chapter 636,
  375  and discount medical plan organizations may sell products and
  376  services as authorized under part II of chapter 636.
  377         4. Prepaid health clinic service providers licensed under
  378  part II of chapter 641 may sell prepaid service contracts and
  379  other arrangements for a specified amount and type of health
  380  services or treatments.
  381         5. Health care providers, including hospitals and other
  382  licensed health facilities, health care clinics, licensed health
  383  professionals, pharmacies, and other licensed health care
  384  providers, may sell service contracts and arrangements for a
  385  specified amount and type of health services or treatments.
  386         6. Provider organizations, including service networks,
  387  group practices, professional associations, and other
  388  incorporated organizations of providers, may sell service
  389  contracts and arrangements for a specified amount and type of
  390  health services or treatments.
  391         7. Corporate entities providing specific health services in
  392  accordance with applicable state law may sell service contracts
  393  and arrangements for a specified amount and type of health
  394  services or treatments.
  396  A vendor described in subparagraphs 3.-7. may not sell products
  397  that provide risk-bearing coverage unless that vendor is
  398  authorized under a certificate of authority issued by the Office
  399  of Insurance Regulation and is authorized to provide coverage in
  400  the relevant geographic area. Otherwise eligible vendors may be
  401  excluded from participating in the program for deceptive or
  402  predatory practices, financial insolvency, or failure to comply
  403  with the terms of the participation agreement or other standards
  404  set by the corporation.
  405         Section 13. Subsection (11) of section 627.64731, Florida
  406  Statutes, is amended to read:
  407         627.64731 Leasing, renting, or granting access to a
  408  participating provider.—
  409         (11) This section does not apply to a contract between a
  410  contracting entity and a discount medical plan organization
  411  licensed or exempt under part II of chapter 636.
  412         Section 14. Paragraph (c) of subsection (7) of section
  413  636.003, Florida Statutes, is amended to read:
  414         636.003 Definitions.—As used in this act, the term:
  415         (7) “Prepaid limited health service organization” means any
  416  person, corporation, partnership, or any other entity which, in
  417  return for a prepayment, undertakes to provide or arrange for,
  418  or provide access to, the provision of a limited health service
  419  to enrollees through an exclusive panel of providers. Prepaid
  420  limited health service organization does not include:
  421         (c) Any person who is licensed pursuant to part II as a
  422  discount medical plan organization.
  423         Section 15. Paragraphs (c) and (d) of subsection (1) of
  424  section 636.205, Florida Statutes, are amended to read:
  425         636.205 Issuance of license; denial.—
  426         (1) Following receipt of an application filed pursuant to
  427  s. 636.204, the office shall review the application and notify
  428  the applicant of any deficiencies contained therein. The office
  429  shall issue a license to an applicant who has filed a completed
  430  application pursuant to s. 636.204 upon payment of the fees
  431  specified in s. 636.204 and upon the office being satisfied that
  432  the following conditions are met:
  433         (c) The ownership, control, and management of the entity
  434  are competent and trustworthy and possess managerial experience
  435  that would make the proposed operation beneficial to the
  436  subscribers. The office may shall not grant or continue to grant
  437  authority to transact the business of a discount medical plan
  438  organization in this state at any time during which the office
  439  has good reason to believe that the ownership, control, or
  440  management of the organization includes any person whose
  441  business operations are or have been marked by business
  442  practices or conduct that is detrimental to the public,
  443  stockholders, investors, or creditors.
  444         (d) The discount medical plan organization has a complaint
  445  procedure that will facilitate the resolution of subscriber
  446  grievances and that includes both formal and informal steps
  447  available within the organization.
  448         Section 16. Section 636.206, Florida Statutes, is amended
  449  to read:
  450         636.206 Examinations and investigations.—
  451         (1) The office may examine or investigate the business and
  452  affairs of any discount medical plan organization. The office
  453  may order any discount medical plan organization or applicant to
  454  produce any records, books, files, advertising and solicitation
  455  materials, or other information and may take statements under
  456  oath to determine whether the discount medical plan organization
  457  or applicant is in violation of the law or is acting contrary to
  458  the public interest. The expenses incurred in conducting any
  459  examination or investigation must be paid by the discount
  460  medical plan organization or applicant. Examinations and
  461  investigations must be conducted as provided in chapter 624.
  462         (2) Failure by the discount medical plan organization to
  463  pay the expenses incurred under subsection (1) is grounds for
  464  denial or revocation.
  465         Section 17. Section 636.207, Florida Statutes, is amended
  466  to read:
  467         636.207 Applicability of part.—Except as otherwise provided
  468  in this part, discount medical plan organizations are governed
  469  by the provisions of this part and are exempt from the Florida
  470  Insurance Code unless specifically referenced.
  471         Section 18. Section 636.210, Florida Statutes, is amended
  472  to read:
  473         636.210 Prohibited activities of a discount medical plan
  474  organization.—
  475         (1) A discount medical plan organization may not:
  476         (a) Use in its advertisements, marketing material,
  477  brochures, and discount cards the term “insurance” except as
  478  otherwise provided in this part or as a disclaimer of any
  479  relationship between discount medical plan organization benefits
  480  and insurance;
  481         (b) Use in its advertisements, marketing material,
  482  brochures, and discount cards the terms “health plan,”
  483  “coverage,” “copay,” “copayments,” “preexisting conditions,”
  484  “guaranteed issue,” “premium,” “PPO,” “preferred provider
  485  organization,” or other terms in a manner that could reasonably
  486  mislead a person into believing the discount medical plan was
  487  health insurance;
  488         (c) Have restrictions on free access to plan providers,
  489  including, but not limited to, waiting periods and notification
  490  periods; or
  491         (d) Pay providers any fees for medical services.
  492         (2) A discount medical plan organization may not collect or
  493  accept money from a member for payment to a provider for
  494  specific medical services furnished or to be furnished to the
  495  member unless the organization has an active certificate of
  496  authority from the office to act as an administrator.
  497         Section 19. Subsection (1), paragraphs (b), (c), and (d) of
  498  subsection (2), and subsection (3) of section 636.218, Florida
  499  Statutes, are amended to read:
  500         636.218 Annual reports.—
  501         (1) Each discount medical plan organization shall must file
  502  with the office, within 3 months after the end of each fiscal
  503  year, an annual report.
  504         (2) Such reports must be on forms prescribed by the
  505  commission and must include:
  506         (b) If different from the initial application or the last
  507  annual report, a list of the names and residence addresses of
  508  all persons responsible for the conduct of the organization’s
  509  affairs, together with a disclosure of the extent and nature of
  510  any contracts or arrangements between such persons and the
  511  discount medical plan organization, including any possible
  512  conflicts of interest.
  513         (c) The number of discount medical plan members in the
  514  state.
  515         (d) Such other information relating to the performance of
  516  the discount medical plan organization as is reasonably required
  517  by the commission or office.
  518         (3) Every discount medical plan organization that which
  519  fails to file an annual report in the form and within the time
  520  required by this section shall forfeit up to $500 for each day
  521  for the first 10 days during which the neglect continues and
  522  shall forfeit up to $1,000 for each day after the first 10 days
  523  during which the neglect continues; and, upon notice by the
  524  office to that effect, the organization’s authority to enroll
  525  new members or to do business in this state ceases while such
  526  default continues. The office shall deposit all sums collected
  527  by the office under this section to the credit of the Insurance
  528  Regulatory Trust Fund. The office may not collect more than
  529  $50,000 for each report.
  530         Section 20. Section 636.220, Florida Statutes, is amended
  531  to read:
  532         636.220 Minimum capital requirements.—
  533         (1) Each discount medical plan organization shall must at
  534  all times maintain a net worth of at least $150,000.
  535         (2) The office may not issue a license unless the discount
  536  medical plan organization has a net worth of at least $150,000.
  537         Section 21. Section 636.222, Florida Statutes, is amended
  538  to read:
  539         636.222 Suspension or revocation of license; suspension of
  540  enrollment of new members; terms of suspension.—
  541         (1) The office may suspend the authority of a discount
  542  medical plan organization to enroll new members, revoke any
  543  license issued to a discount medical plan organization, or order
  544  compliance if the office finds that any of the following
  545  conditions exist:
  546         (a) The organization is not operating in compliance with
  547  this part.
  548         (b) The organization does not have the minimum net worth as
  549  required by this part.
  550         (c) The organization has advertised, merchandised, or
  551  attempted to merchandise its services in such a manner as to
  552  misrepresent its services or capacity for service or has engaged
  553  in deceptive, misleading, or unfair practices with respect to
  554  advertising or merchandising.
  555         (d) The organization is not fulfilling its obligations as a
  556  medical discount medical plan organization.
  557         (e) The continued operation of the organization would be
  558  hazardous to its members.
  559         (2) If the office has cause to believe that grounds for the
  560  suspension or revocation of a license exist, the office must
  561  shall notify the discount medical plan organization in writing
  562  specifically stating the grounds for suspension or revocation
  563  and shall pursue a hearing on the matter in accordance with the
  564  provisions of chapter 120.
  565         (3) When the license of a discount medical plan
  566  organization is surrendered or revoked, such organization must
  567  proceed, immediately following the effective date of the order
  568  of revocation, to wind up its affairs transacted under the
  569  license. The organization may not engage in any further
  570  advertising, solicitation, collecting of fees, or renewal of
  571  contracts.
  572         (4) The office shall, in its order suspending the authority
  573  of a discount medical plan organization to enroll new members,
  574  specify the period during which the suspension is to be in
  575  effect and the conditions, if any, which must be met by the
  576  discount medical plan organization before prior to reinstatement
  577  of its license to enroll new members. The order of suspension is
  578  subject to rescission or modification by further order of the
  579  office before prior to the expiration of the suspension period.
  580  Reinstatement may not be made unless requested by the discount
  581  medical plan organization; however, the office may not grant
  582  reinstatement if it finds that the circumstances for which the
  583  suspension occurred still exist or are likely to recur.
  584         Section 22. Section 636.223, Florida Statutes, is amended
  585  to read:
  586         636.223 Administrative penalty.—In lieu of suspending or
  587  revoking a certificate of authority whenever any discount
  588  medical plan organization has been found to have violated any
  589  provision of this part, the office may:
  590         (1) Issue and cause to be served upon the organization
  591  charged with the violation a copy of such findings and an order
  592  requiring such organization to cease and desist from engaging in
  593  the act or practice that constitutes the violation.
  594         (2) Impose a monetary penalty of not less than $100 for
  595  each violation, but not to exceed an aggregate penalty of
  596  $75,000.
  597         Section 23. Section 636.224, Florida Statutes, is amended
  598  to read:
  599         636.224 Notice of change of name or address of discount
  600  medical plan organization.—Each discount medical plan
  601  organization must provide the office at least 30 days’ advance
  602  notice of any change in the discount medical plan organization’s
  603  name, address, principal business address, or mailing address.
  604         Section 24. Section 636.226, Florida Statutes, is amended
  605  to read:
  606         636.226 Provider name listing.—Each discount medical plan
  607  organization must maintain on an Internet website an up-to-date
  608  list of the names and addresses of the providers with which it
  609  has contracted, on an Internet website page, the address of
  610  which must shall be prominently displayed on all its
  611  advertisements, marketing materials, brochures, and discount
  612  cards. This section applies to those providers with whom the
  613  discount medical plan organization has contracted directly, as
  614  well as those who are members of a provider network with which
  615  the discount medical plan organization has contracted.
  616         Section 25. Section 636.232, Florida Statutes, is amended
  617  to read:
  618         636.232 Rules.—The commission may adopt rules to administer
  619  this part, including rules for the licensing of discount medical
  620  plan organizations; establishing standards for evaluating forms,
  621  advertisements, marketing materials, brochures, and discount
  622  cards; providing for the collection of data; relating to
  623  disclosures to plan members; and defining terms used in this
  624  part.
  625         Section 26. Section 636.234, Florida Statutes, is amended
  626  to read:
  627         636.234 Service of process on a discount medical plan
  628  organization.—Sections 624.422 and 624.423 apply to a discount
  629  medical plan organization as if the discount medical plan
  630  organization were an insurer.
  631         Section 27. Section 636.236, Florida Statutes, is amended
  632  to read:
  633         636.236 Surety bond or security deposit.—
  634         (1) Each discount medical plan organization licensed
  635  pursuant to the provisions of this part shall must maintain in
  636  force a surety bond in its own name in an amount not less than
  637  $35,000 to be used at the discretion of the office to protect
  638  the financial interests of members who may be adversely affected
  639  by the insolvency of a discount medical plan organization. The
  640  bond must be issued by an insurance company that is licensed to
  641  do business in this state.
  642         (2) In lieu of the bond specified in subsection (1), a
  643  licensed discount medical plan organization may deposit and
  644  maintain deposited in trust with the department securities
  645  eligible for deposit under s. 625.52 having at all times a value
  646  of not less than $35,000. If a licensed discount medical plan
  647  organization substitutes its deposited securities under this
  648  subsection with a surety bond authorized in subsection (1), such
  649  deposited securities must shall be returned to the discount
  650  medical plan organization no later than 45 days following the
  651  effective date of the surety bond.
  652         (3) A No judgment creditor or other claimant of a discount
  653  medical plan organization, other than the office or department,
  654  does not shall have the right to levy upon any of the assets or
  655  securities held in this state as a deposit under subsections (1)
  656  and (2).
  657         Section 28. Subsections (2) and (3) of section 636.238,
  658  Florida Statutes, are amended to read:
  659         636.238 Penalties for violation of this part.—
  660         (2) A person who operates as or willfully aids and abets
  661  another operating as a discount medical plan organization in
  662  violation of s. 636.204(1) commits a felony punishable as
  663  provided for in s. 624.401(4)(b), as if the unlicensed discount
  664  medical plan organization were an unauthorized insurer, and the
  665  fees, dues, charges, or other consideration collected from the
  666  members by the unlicensed discount medical plan organization or
  667  marketer were insurance premium.
  668         (3) A person who collects fees for purported membership in
  669  a discount medical plan but purposefully fails to provide the
  670  promised benefits commits a theft, punishable as provided in s.
  671  812.014.
  672         Section 29. Subsection (1) of section 636.240, Florida
  673  Statutes, is amended to read:
  674         636.240 Injunctions.—
  675         (1) In addition to the penalties and other enforcement
  676  provisions of this part, the office may seek both temporary and
  677  permanent injunctive relief when:
  678         (a) A discount medical plan is being operated by any person
  679  or entity that is not licensed pursuant to this part.
  680         (b) Any person, entity, or discount medical plan
  681  organization has engaged in any activity prohibited by this part
  682  or any rule adopted pursuant to this part.
  683         Section 30. Section 636.244, Florida Statutes, is amended
  684  to read:
  685         636.244 Unlicensed discount medical plan organizations.
  686  Sections The provisions of ss. 626.901-626.912 apply to the
  687  activities of an unlicensed discount medical plan organization
  688  as if the unlicensed discount medical plan organization were an
  689  unauthorized insurer.
  690         Section 31. This act shall take effect upon becoming a law.