Florida Senate - 2017                       CS for CS for SB 430
       By the Committees on Appropriations; and Banking and Insurance;
       and Senators Bean and Flores
       576-04154-17                                           2017430c2
    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; amending s.
    7         636.206, F.S.; conforming provisions to changes made
    8         by the act; requiring discount plan organizations to
    9         maintain, for a specified timeframe, certain records
   10         in a form accessible to the Office of Insurance
   11         Regulation during an examination or investigation;
   12         amending s. 636.208, F.S.; conforming provisions to
   13         changes made by the act; specifying periodic charge
   14         reimbursement and other requirements for discount plan
   15         organizations following membership cancellation
   16         requests; amending s. 636.212, F.S.; requiring
   17         discount plan organizations and marketers to provide
   18         specified disclosures to prospective members before
   19         enrollment; authorizing discount plan organizations
   20         and marketers to make other disclosures; requiring
   21         prospective members to acknowledge acceptance of
   22         disclosures before enrollment; specifying requirements
   23         for disclosures made in writing or by electronic
   24         means; revising requirements for disclosures made by
   25         telephone; amending s. 636.214, F.S.; making a
   26         technical change; conforming provisions to changes
   27         made by the act; amending s. 636.216, F.S.; deleting
   28         provisions relating to charge and form filings;
   29         conforming a provision to changes made by the act;
   30         amending s. 636.228, F.S.; conforming provisions to
   31         changes made by the act; authorizing a discount plan
   32         organization to delegate functions to its marketers;
   33         providing that the discount plan organization is bound
   34         by acts of its marketers within the scope of the
   35         delegation; amending s. 636.230, F.S.; conforming
   36         provisions to changes made by the act; authorizing a
   37         marketer or discount plan organization to commingle
   38         certain products on a single page of certain
   39         documents; deleting a requirement for discount medical
   40         plan fees to be provided in writing under certain
   41         circumstances; amending s. 636.232, F.S.; conforming a
   42         provision to changes made by the act; deleting
   43         rulemaking authority of the Financial Services
   44         Commission as to the establishment of certain
   45         standards; amending ss. 408.9091, 408.910, 627.64731,
   46         636.003, 636.205, 636.207, 636.210, 636.218, 636.220,
   47         636.222, 636.223, 636.224, 636.226, 636.234, 636.236,
   48         636.238, 636.240, and 636.244, F.S.; conforming
   49         provisions to changes made by the act; providing an
   50         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.
  185         Section 5. Section 636.206, Florida Statutes, is amended to
  186  read:
  187         636.206 Examinations and investigations.—
  188         (1) The office may examine or investigate the business and
  189  affairs of any discount medical plan organization. The office
  190  may order any discount medical plan organization or applicant to
  191  produce any records, books, files, advertising and solicitation
  192  materials, or other information and may take statements under
  193  oath to determine whether the discount medical plan organization
  194  or applicant is in violation of the law or is acting contrary to
  195  the public interest. The expenses incurred in conducting any
  196  examination or investigation must be paid by the discount
  197  medical plan organization or applicant. Examinations and
  198  investigations must be conducted as provided in chapter 624. For
  199  the duration of the agreement and for 5 years thereafter, every
  200  discount plan organization shall maintain, in a form accessible
  201  to the office during an examination or investigation, an
  202  accurate record of each member, the membership materials
  203  provided to the member, the discount plan issued to the member,
  204  and the charges billed and paid by the member.
  205         (2) Failure by the discount medical plan organization to
  206  pay the expenses incurred under subsection (1) is grounds for
  207  denial or revocation.
  208         Section 6. Section 636.208, Florida Statutes, is amended to
  209  read:
  210         636.208 Fees; charges; reimbursement.—
  211         (1) A discount medical plan organization may charge a
  212  periodic charge as well as a reasonable one-time processing fee
  213  for a discount medical plan.
  214         (2)(a) If the member cancels his or her membership in the
  215  discount medical plan organization within the first 30 days
  216  after the effective date of enrollment in the plan, the member
  217  shall receive a reimbursement of all periodic charges upon
  218  return of the discount card to the discount medical plan
  219  organization.
  220         (b)If the member cancels his or her membership in the
  221  discount plan organization consistent with the open enrollment
  222  rules established by an employer or association for a plan
  223  having an open enrollment period, the member shall receive a pro
  224  rata reimbursement of all periodic charges upon return of the
  225  discount card to the discount plan organization.
  226         (c) Except for plans enrolled under paragraph (b), if the
  227  member requests in writing the cancellation of his or her
  228  membership in the discount plan organization after the first 30
  229  days allowed in paragraph (a), the discount plan organization:
  230         1. Must make the cancellation effective no later than 30
  231  days after receiving the member’s cancellation request;
  232         2. May not make future charges to the member after the
  233  cancellation has taken effect; and
  234         3. Must provide the member a pro rata reimbursement of
  235  periodic charges for all months after the effective date of the
  236  cancellation.
  237         (3) If the discount medical plan organization cancels a
  238  membership for any reason other than nonpayment of fees by the
  239  member, the discount medical plan organization must shall make a
  240  pro rata reimbursement of all periodic charges to the member.
  241         (4) In addition to the reimbursement of periodic charges
  242  for the reasons stated in subsections (2) and (3), a discount
  243  medical plan organization shall also reimburse the member for
  244  any portion of a one-time processing fee that exceeds $30 per
  245  year.
  246         Section 7. Section 636.212, Florida Statutes, is amended to
  247  read:
  248         636.212 Disclosures.—A discount plan organization or
  249  marketer shall provide disclosures to a prospective member
  250  before his or her enrollment. A discount plan organization or
  251  marketer may make disclosures in addition to those described in
  252  this part. Before enrollment, a prospective member must
  253  acknowledge he or she has accepted the disclosures The following
  254  disclosures must be made in writing to any prospective member
  255  and must be on the first page of any advertisements, marketing
  256  materials, or brochures relating to a discount medical plan. The
  257  disclosures must be printed in not less than 12-point type:
  258         (1) The disclosures must include:
  259         (a) That the plan is not insurance.
  260         (b)(2) That the plan provides discounts at certain health
  261  care providers for medical services.
  262         (c)(3) That the plan does not make payments directly to the
  263  providers of medical services.
  264         (d)(4) That the plan member is obligated to pay for all
  265  health care services but will receive a discount from those
  266  health care providers who have contracted with the discount plan
  267  organization.
  268         (e)(5) The name and address of the licensed discount
  269  medical plan organization.
  270         (2)Written disclosures must include the disclosures in
  271  subsection (1) on the first page of any advertisement, marketing
  272  material, or brochure relating to a discount plan. The first
  273  page is the page that first includes the information describing
  274  benefits. The disclosures must be printed in not less than 12
  275  point type.
  276         (3)Disclosures provided by electronic means must include
  277  the disclosures in subsection (1) on any advertisement,
  278  marketing material, or brochure relating to a discount plan. The
  279  disclosures must be viewable in a readable font size and color.
  280         (4)Disclosures made by telephone must include the
  281  disclosures in subsection (1), and a written disclosure in
  282  accordance with subsection (2) must also be provided with the
  283  initial materials sent to the prospective or new member.
  285  If the initial contract is made by telephone, the disclosures
  286  required by this section shall be made orally and provided in
  287  the initial written materials that describe the benefits under
  288  the discount medical plan provided to the prospective or new
  289  member.
  290         Section 8. Section 636.214, Florida Statutes, is amended to
  291  read:
  292         636.214 Provider agreements.—
  293         (1) All providers offering medical services to members
  294  under a discount medical plan must provide such services
  295  pursuant to a written agreement. The agreement may be entered
  296  into directly by the provider or by a provider network to which
  297  the provider belongs.
  298         (2) A provider agreement between a discount medical plan
  299  organization and a provider must provide the following:
  300         (a) A list of the services and products to be provided at a
  301  discount.
  302         (b) The amount or amounts of the discounts or,
  303  alternatively, a fee schedule which reflects the provider’s
  304  discounted rates.
  305         (c) A statement that the provider will not charge members
  306  more than the discounted rates.
  307         (3) A provider agreement between a discount medical plan
  308  organization and a provider network must shall require that the
  309  provider network have written agreements with its providers
  310  which:
  311         (a) Contain the terms described in subsection (2).
  312         (b) Authorize the provider network to contract with the
  313  discount medical plan organization on behalf of the provider.
  314         (c) Require the network to maintain an up-to-date list of
  315  its contracted providers and to provide that list on a monthly
  316  basis to the discount medical plan organization.
  317         (4) The discount medical plan organization shall maintain a
  318  copy of each active provider agreement into which it has
  319  entered.
  320         Section 9. Section 636.216, Florida Statutes, is amended to
  321  read:
  322         636.216 Written agreement Charge or form filings.—
  323         (1) All charges to members must be filed with the office
  324  and any charge to members greater than $30 per month or $360 per
  325  year must be approved by the office before the charges can be
  326  used. The discount medical plan organization has the burden of
  327  proof that the charges bear a reasonable relation to the
  328  benefits received by the member.
  329         (2) There must be a written agreement between the discount
  330  medical plan organization and the member specifying the benefits
  331  under the discount medical plan and complying with the
  332  disclosure requirements of this part.
  333         (3)All forms used, including the written agreement
  334  pursuant to subsection (2), must first be filed with and
  335  approved by the office. Every form filed shall be identified by
  336  a unique form number placed in the lower left corner of each
  337  form.
  338         (4) A charge or form is considered approved on the 60th day
  339  after its date of filing unless it has been previously
  340  disapproved by the office. The office shall disapprove any form
  341  that does not meet the requirements of this part or that is
  342  unreasonable, discriminatory, misleading, or unfair. If such
  343  filings are disapproved, the office shall notify the discount
  344  medical plan organization and shall specify in the notice the
  345  reasons for disapproval.
  346         Section 10. Section 636.228, Florida Statutes, is amended
  347  to read:
  348         636.228 Marketing of discount medical plans.—
  349         (1) All advertisements, marketing materials, brochures, and
  350  discount cards used by marketers must be approved in writing for
  351  such use by the discount medical plan organization.
  352         (2) The discount medical plan organization must shall have
  353  an executed written agreement with a marketer before prior to
  354  the marketer’s marketing, promoting, selling, or distributing
  355  the discount medical plan. Such agreement must shall prohibit
  356  the marketer from using marketing materials, brochures, and
  357  discount cards without the approval in writing by the discount
  358  medical plan organization. The discount medical plan
  359  organization may delegate functions to its marketers but shall
  360  be bound by any acts of its marketers, within the scope of the
  361  delegation, which marketers’ agency, that do not comply with the
  362  provisions of this part.
  363         Section 11. Section 636.230, Florida Statutes, is amended
  364  to read:
  365         636.230 Bundling discount medical plans with other
  366  products.—A marketer or discount plan organization selling a
  367  discount plan with medical services and other services may
  368  commingle those products on a single page of forms,
  369  advertisements, marketing materials, or brochures When a
  370  marketer or discount medical plan organization sells a discount
  371  medical plan together with any other product, the fees for the
  372  discount medical plan must be provided in writing to the member
  373  if the fees exceed $30.
  374         Section 12. Section 636.232, Florida Statutes, is amended
  375  to read:
  376         636.232 Rules.—The commission may adopt rules to administer
  377  this part, including rules for the licensing of discount medical
  378  plan organizations,; establishing standards for evaluating
  379  forms, advertisements, marketing materials, brochures, and
  380  discount cards; providing for the collection of data,; relating
  381  to disclosures to plan members,; and defining terms used in this
  382  part.
  383         Section 13. Paragraph (b) of subsection (5) of section
  384  408.9091, Florida Statutes, is amended to read:
  385         408.9091 Cover Florida Health Care Access Program.—
  386         (5) PLAN PROPOSALS.—The agency and the office shall
  387  announce, no later than July 1, 2008, an invitation to negotiate
  388  for Cover Florida plan entities to design a Cover Florida plan
  389  proposal in which benefits and premiums are specified.
  390         (b) The agency and the office may announce an invitation to
  391  negotiate for the design of Cover Florida Plus products to
  392  companies that offer supplemental insurance, discount medical
  393  plan organizations licensed under part II of chapter 636, or
  394  prepaid health clinics licensed under part II of chapter 641.
  395         Section 14. Paragraph (d) of subsection (2) and paragraph
  396  (d) of subsection (4) of section 408.910, Florida Statutes, are
  397  amended to read:
  398         408.910 Florida Health Choices Program.—
  399         (2) DEFINITIONS.—As used in this section, the term:
  400         (d) “Insurer” means an entity licensed under chapter 624
  401  which offers an individual health insurance policy or a group
  402  health insurance policy, a preferred provider organization as
  403  defined in s. 627.6471, an exclusive provider organization as
  404  defined in s. 627.6472, or a health maintenance organization
  405  licensed under part I of chapter 641, or a prepaid limited
  406  health service organization or discount medical plan
  407  organization licensed under chapter 636.
  408         (4) ELIGIBILITY AND PARTICIPATION.—Participation in the
  409  program is voluntary and shall be available to employers,
  410  individuals, vendors, and health insurance agents as specified
  411  in this subsection.
  412         (d) All eligible vendors who choose to participate and the
  413  products and services that the vendors are permitted to sell are
  414  as follows:
  415         1. Insurers licensed under chapter 624 may sell health
  416  insurance policies, limited benefit policies, other risk-bearing
  417  coverage, and other products or services.
  418         2. Health maintenance organizations licensed under part I
  419  of chapter 641 may sell health maintenance contracts, limited
  420  benefit policies, other risk-bearing products, and other
  421  products or services.
  422         3. Prepaid limited health service organizations may sell
  423  products and services as authorized under part I of chapter 636,
  424  and discount medical plan organizations may sell products and
  425  services as authorized under part II of chapter 636.
  426         4. Prepaid health clinic service providers licensed under
  427  part II of chapter 641 may sell prepaid service contracts and
  428  other arrangements for a specified amount and type of health
  429  services or treatments.
  430         5. Health care providers, including hospitals and other
  431  licensed health facilities, health care clinics, licensed health
  432  professionals, pharmacies, and other licensed health care
  433  providers, may sell service contracts and arrangements for a
  434  specified amount and type of health services or treatments.
  435         6. Provider organizations, including service networks,
  436  group practices, professional associations, and other
  437  incorporated organizations of providers, may sell service
  438  contracts and arrangements for a specified amount and type of
  439  health services or treatments.
  440         7. Corporate entities providing specific health services in
  441  accordance with applicable state law may sell service contracts
  442  and arrangements for a specified amount and type of health
  443  services or treatments.
  445  A vendor described in subparagraphs 3.-7. may not sell products
  446  that provide risk-bearing coverage unless that vendor is
  447  authorized under a certificate of authority issued by the Office
  448  of Insurance Regulation and is authorized to provide coverage in
  449  the relevant geographic area. Otherwise eligible vendors may be
  450  excluded from participating in the program for deceptive or
  451  predatory practices, financial insolvency, or failure to comply
  452  with the terms of the participation agreement or other standards
  453  set by the corporation.
  454         Section 15. Subsection (11) of section 627.64731, Florida
  455  Statutes, is amended to read:
  456         627.64731 Leasing, renting, or granting access to a
  457  participating provider.—
  458         (11) This section does not apply to a contract between a
  459  contracting entity and a discount medical plan organization
  460  licensed or exempt under part II of chapter 636.
  461         Section 16. Paragraph (c) of subsection (7) of section
  462  636.003, Florida Statutes, is amended to read:
  463         636.003 Definitions.—As used in this act, the term:
  464         (7) “Prepaid limited health service organization” means any
  465  person, corporation, partnership, or any other entity which, in
  466  return for a prepayment, undertakes to provide or arrange for,
  467  or provide access to, the provision of a limited health service
  468  to enrollees through an exclusive panel of providers. Prepaid
  469  limited health service organization does not include:
  470         (c) Any person who is licensed pursuant to part II as a
  471  discount medical plan organization.
  472         Section 17. Paragraphs (c) and (d) of subsection (1) of
  473  section 636.205, Florida Statutes, are amended to read:
  474         636.205 Issuance of license; denial.—
  475         (1) Following receipt of an application filed pursuant to
  476  s. 636.204, the office shall review the application and notify
  477  the applicant of any deficiencies contained therein. The office
  478  shall issue a license to an applicant who has filed a completed
  479  application pursuant to s. 636.204 upon payment of the fees
  480  specified in s. 636.204 and upon the office being satisfied that
  481  the following conditions are met:
  482         (c) The ownership, control, and management of the entity
  483  are competent and trustworthy and possess managerial experience
  484  that would make the proposed operation beneficial to the
  485  subscribers. The office may shall not grant or continue to grant
  486  authority to transact the business of a discount medical plan
  487  organization in this state at any time during which the office
  488  has good reason to believe that the ownership, control, or
  489  management of the organization includes any person whose
  490  business operations are or have been marked by business
  491  practices or conduct that is detrimental to the public,
  492  stockholders, investors, or creditors.
  493         (d) The discount medical plan organization has a complaint
  494  procedure that will facilitate the resolution of subscriber
  495  grievances and that includes both formal and informal steps
  496  available within the organization.
  497         Section 18. Section 636.207, Florida Statutes, is amended
  498  to read:
  499         636.207 Applicability of part.—Except as otherwise provided
  500  in this part, discount medical plan organizations are governed
  501  by the provisions of this part and are exempt from the Florida
  502  Insurance Code unless specifically referenced.
  503         Section 19. Section 636.210, Florida Statutes, is amended
  504  to read:
  505         636.210 Prohibited activities of a discount medical plan
  506  organization.—
  507         (1) A discount medical plan organization may not:
  508         (a) Use in its advertisements, marketing material,
  509  brochures, and discount cards the term “insurance” except as
  510  otherwise provided in this part or as a disclaimer of any
  511  relationship between discount medical plan organization benefits
  512  and insurance;
  513         (b) Use in its advertisements, marketing material,
  514  brochures, and discount cards the terms “health plan,”
  515  “coverage,” “copay,” “copayments,” “preexisting conditions,”
  516  “guaranteed issue,” “premium,” “PPO,” “preferred provider
  517  organization,” or other terms in a manner that could reasonably
  518  mislead a person into believing the discount medical plan was
  519  health insurance;
  520         (c) Have restrictions on free access to plan providers,
  521  including, but not limited to, waiting periods and notification
  522  periods; or
  523         (d) Pay providers any fees for medical services.
  524         (2) A discount medical plan organization may not collect or
  525  accept money from a member for payment to a provider for
  526  specific medical services furnished or to be furnished to the
  527  member unless the organization has an active certificate of
  528  authority from the office to act as an administrator.
  529         Section 20. Subsection (1), paragraphs (b), (c), and (d) of
  530  subsection (2), and subsection (3) of section 636.218, Florida
  531  Statutes, are amended to read:
  532         636.218 Annual reports.—
  533         (1) Each discount medical plan organization shall must file
  534  with the office, within 3 months after the end of each fiscal
  535  year, an annual report.
  536         (2) Such reports must be on forms prescribed by the
  537  commission and must include:
  538         (b) If different from the initial application or the last
  539  annual report, a list of the names and residence addresses of
  540  all persons responsible for the conduct of the organization’s
  541  affairs, together with a disclosure of the extent and nature of
  542  any contracts or arrangements between such persons and the
  543  discount medical plan organization, including any possible
  544  conflicts of interest.
  545         (c) The number of discount medical plan members in the
  546  state.
  547         (d) Such other information relating to the performance of
  548  the discount medical plan organization as is reasonably required
  549  by the commission or office.
  550         (3) Every discount medical plan organization that which
  551  fails to file an annual report in the form and within the time
  552  required by this section shall forfeit up to $500 for each day
  553  for the first 10 days during which the neglect continues and
  554  shall forfeit up to $1,000 for each day after the first 10 days
  555  during which the neglect continues; and, upon notice by the
  556  office to that effect, the organization’s authority to enroll
  557  new members or to do business in this state ceases while such
  558  default continues. The office shall deposit all sums collected
  559  by the office under this section to the credit of the Insurance
  560  Regulatory Trust Fund. The office may not collect more than
  561  $50,000 for each report.
  562         Section 21. Section 636.220, Florida Statutes, is amended
  563  to read:
  564         636.220 Minimum capital requirements.—
  565         (1) Each discount medical plan organization shall must at
  566  all times maintain a net worth of at least $150,000.
  567         (2) The office may not issue a license unless the discount
  568  medical plan organization has a net worth of at least $150,000.
  569         Section 22. Section 636.222, Florida Statutes, is amended
  570  to read:
  571         636.222 Suspension or revocation of license; suspension of
  572  enrollment of new members; terms of suspension.—
  573         (1) The office may suspend the authority of a discount
  574  medical plan organization to enroll new members, revoke any
  575  license issued to a discount medical plan organization, or order
  576  compliance if the office finds that any of the following
  577  conditions exist:
  578         (a) The organization is not operating in compliance with
  579  this part.
  580         (b) The organization does not have the minimum net worth as
  581  required by this part.
  582         (c) The organization has advertised, merchandised, or
  583  attempted to merchandise its services in such a manner as to
  584  misrepresent its services or capacity for service or has engaged
  585  in deceptive, misleading, or unfair practices with respect to
  586  advertising or merchandising.
  587         (d) The organization is not fulfilling its obligations as a
  588  medical discount medical plan organization.
  589         (e) The continued operation of the organization would be
  590  hazardous to its members.
  591         (2) If the office has cause to believe that grounds for the
  592  suspension or revocation of a license exist, the office must
  593  shall notify the discount medical plan organization in writing
  594  specifically stating the grounds for suspension or revocation
  595  and shall pursue a hearing on the matter in accordance with the
  596  provisions of chapter 120.
  597         (3) When the license of a discount medical plan
  598  organization is surrendered or revoked, such organization must
  599  proceed, immediately following the effective date of the order
  600  of revocation, to wind up its affairs transacted under the
  601  license. The organization may not engage in any further
  602  advertising, solicitation, collecting of fees, or renewal of
  603  contracts.
  604         (4) The office shall, in its order suspending the authority
  605  of a discount medical plan organization to enroll new members,
  606  specify the period during which the suspension is to be in
  607  effect and the conditions, if any, which must be met by the
  608  discount medical plan organization before prior to reinstatement
  609  of its license to enroll new members. The order of suspension is
  610  subject to rescission or modification by further order of the
  611  office before prior to the expiration of the suspension period.
  612  Reinstatement may not be made unless requested by the discount
  613  medical plan organization; however, the office may not grant
  614  reinstatement if it finds that the circumstances for which the
  615  suspension occurred still exist or are likely to recur.
  616         Section 23. Section 636.223, Florida Statutes, is amended
  617  to read:
  618         636.223 Administrative penalty.—In lieu of suspending or
  619  revoking a certificate of authority whenever any discount
  620  medical plan organization has been found to have violated any
  621  provision of this part, the office may:
  622         (1) Issue and cause to be served upon the organization
  623  charged with the violation a copy of such findings and an order
  624  requiring such organization to cease and desist from engaging in
  625  the act or practice that constitutes the violation.
  626         (2) Impose a monetary penalty of not less than $100 for
  627  each violation, but not to exceed an aggregate penalty of
  628  $75,000.
  629         Section 24. Section 636.224, Florida Statutes, is amended
  630  to read:
  631         636.224 Notice of change of name or address of discount
  632  medical plan organization.—Each discount medical plan
  633  organization must provide the office at least 30 days’ advance
  634  notice of any change in the discount medical plan organization’s
  635  name, address, principal business address, or mailing address.
  636         Section 25. Section 636.226, Florida Statutes, is amended
  637  to read:
  638         636.226 Provider name listing.—Each discount medical plan
  639  organization must maintain on an Internet website an up-to-date
  640  list of the names and addresses of the providers with which it
  641  has contracted, on an Internet website page, the address of
  642  which must shall be prominently displayed on all its
  643  advertisements, marketing materials, brochures, and discount
  644  cards. This section applies to those providers with whom the
  645  discount medical plan organization has contracted directly, as
  646  well as those who are members of a provider network with which
  647  the discount medical plan organization has contracted.
  648         Section 26. Section 636.234, Florida Statutes, is amended
  649  to read:
  650         636.234 Service of process on a discount medical plan
  651  organization.—Sections 624.422 and 624.423 apply to a discount
  652  medical plan organization as if the discount medical plan
  653  organization were an insurer.
  654         Section 27. Section 636.236, Florida Statutes, is amended
  655  to read:
  656         636.236 Surety bond or security deposit.—
  657         (1) Each discount medical plan organization licensed
  658  pursuant to the provisions of this part shall must maintain in
  659  force a surety bond in its own name in an amount not less than
  660  $35,000 to be used at the discretion of the office to protect
  661  the financial interests of members who may be adversely affected
  662  by the insolvency of a discount medical plan organization. The
  663  bond must be issued by an insurance company that is licensed to
  664  do business in this state.
  665         (2) In lieu of the bond specified in subsection (1), a
  666  licensed discount medical plan organization may deposit and
  667  maintain deposited in trust with the department securities
  668  eligible for deposit under s. 625.52 having at all times a value
  669  of not less than $35,000. If a licensed discount medical plan
  670  organization substitutes its deposited securities under this
  671  subsection with a surety bond authorized in subsection (1), such
  672  deposited securities must shall be returned to the discount
  673  medical plan organization no later than 45 days following the
  674  effective date of the surety bond.
  675         (3) A No judgment creditor or other claimant of a discount
  676  medical plan organization, other than the office or department,
  677  does not shall have the right to levy upon any of the assets or
  678  securities held in this state as a deposit under subsections (1)
  679  and (2).
  680         Section 28. Subsections (2) and (3) of section 636.238,
  681  Florida Statutes, are amended to read:
  682         636.238 Penalties for violation of this part.—
  683         (2) A person who operates as or willfully aids and abets
  684  another operating as a discount medical plan organization in
  685  violation of s. 636.204(1) commits a felony punishable as
  686  provided for in s. 624.401(4)(b), as if the unlicensed discount
  687  medical plan organization were an unauthorized insurer, and the
  688  fees, dues, charges, or other consideration collected from the
  689  members by the unlicensed discount medical plan organization or
  690  marketer were insurance premium.
  691         (3) A person who collects fees for purported membership in
  692  a discount medical plan but purposefully fails to provide the
  693  promised benefits commits a theft, punishable as provided in s.
  694  812.014.
  695         Section 29. Subsection (1) of section 636.240, Florida
  696  Statutes, is amended to read:
  697         636.240 Injunctions.—
  698         (1) In addition to the penalties and other enforcement
  699  provisions of this part, the office may seek both temporary and
  700  permanent injunctive relief when:
  701         (a) A discount medical plan is being operated by any person
  702  or entity that is not licensed pursuant to this part.
  703         (b) Any person, entity, or discount medical plan
  704  organization has engaged in any activity prohibited by this part
  705  or any rule adopted pursuant to this part.
  706         Section 30. Section 636.244, Florida Statutes, is amended
  707  to read:
  708         636.244 Unlicensed discount medical plan organizations.
  709  Sections The provisions of ss. 626.901-626.912 apply to the
  710  activities of an unlicensed discount medical plan organization
  711  as if the unlicensed discount medical plan organization were an
  712  unauthorized insurer.
  713         Section 31. This act shall take effect upon becoming a law.