Senate Bill 1446

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    Florida Senate - 1998                                  SB 1446

    By Senators Ostalkiewicz, Grant, Williams and Myers





    12-911-98

  1                      A bill to be entitled

  2         An act relating to health insurance coverage

  3         for employees of small businesses; amending s.

  4         627.6699, F.S., the "Employee Health Care

  5         Access Act"; providing limitations on coverage

  6         that must be included under health benefit

  7         plans issued by small business carriers;

  8         providing an effective date.

  9

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

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12         Section 1.  Paragraph (b) of subsection (12) of section

13  627.6699, Florida Statutes, is amended to read:

14         627.6699  Employee Health Care Access Act.--

15         (12)  STANDARD, BASIC, AND LIMITED HEALTH BENEFIT

16  PLANS.--

17         (b)1.  Each small employer carrier issuing new health

18  benefit plans shall offer to any small employer, upon request,

19  a standard health benefit plan and a basic health benefit plan

20  each of which that meets the criteria set forth in this

21  section.

22         2.  For purposes of this subsection, the terms

23  "standard health benefit plan" and "basic health benefit plan"

24  mean policies or contracts that a small employer carrier

25  offers to eligible small employers and that contain:

26         a.  An exclusion for services that are not medically

27  necessary or that are not covered preventive health services;

28  and

29         b.  A procedure for preauthorization by the small

30  employer carrier, or its designees.

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    Florida Senate - 1998                                  SB 1446
    12-911-98




  1         3.  A small employer carrier may include the following

  2  managed care provisions in the policy or contract to control

  3  costs:

  4         a.  A preferred provider arrangement or exclusive

  5  provider organization or any combination thereof, in which a

  6  small employer carrier enters into a written agreement with

  7  the provider to provide services at specified levels of

  8  reimbursement or to provide reimbursement to specified

  9  providers. Any such written agreement between a provider and a

10  small employer carrier must contain a provision under which

11  the parties agree that the insured individual or covered

12  member has no obligation to make payment for any medical

13  service rendered by the provider which is determined not to be

14  medically necessary.  A carrier may use preferred provider

15  arrangements or exclusive provider arrangements to the same

16  extent as allowed in group products that are not issued to

17  small employers.

18         b.  A procedure for utilization review by the small

19  employer carrier or its designees.

20

21  This subparagraph does not prohibit a small employer carrier

22  from including in its policy or contract additional managed

23  care and cost containment provisions, subject to the approval

24  of the department, which have potential for controlling costs

25  in a manner that does not result in inequitable treatment of

26  insureds or subscribers.  The carrier may use such provisions

27  to the same extent as authorized for group products that are

28  not issued to small employers.

29         4.  The standard health benefit plan shall include

30  coverage for:

31         a.  Coverage for Inpatient hospitalization;

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    Florida Senate - 1998                                  SB 1446
    12-911-98




  1         b.  Coverage for Outpatient services;

  2         c.  Coverage for Newborn children pursuant to s.

  3  627.6575;

  4         d.  Coverage for Child care supervision services

  5  pursuant to s. 627.6579;

  6         e.  Coverage for Adopted children upon placement in the

  7  residence pursuant to s. 627.6578;

  8         f.  Coverage for Mammograms pursuant to s. 627.6613;

  9         g.  Coverage for Handicapped children pursuant to s.

10  627.6615;

11         h.  Emergency or urgent care out of the geographic

12  service area; and

13         i.  Coverage for Services provided by a hospice

14  licensed under s. 400.602 in cases where such coverage would

15  be the most appropriate and the most cost-effective method for

16  treating a covered illness.

17         5.  The standard health benefit plan and the basic

18  health benefit plan may include a schedule of benefit

19  limitations for specified services and procedures.  If the

20  committee develops such a schedule of benefits limitation for

21  the standard health benefit plan or the basic health benefit

22  plan, a small employer carrier offering the plan must offer

23  the employer an option for increasing the benefit schedule

24  amounts by 4 percent annually.

25         6.  The basic health benefit plan shall include all of

26  the benefits specified in subparagraph 4.; however, the basic

27  health benefit plan shall place additional restrictions on the

28  benefits and utilization and may also impose additional cost

29  containment measures.

30         7.  Sections 627.419(2), (3), and (4), 627.6574,

31  627.6612, 627.66121, 627.66122, 627.6616, 627.6618, and

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    Florida Senate - 1998                                  SB 1446
    12-911-98




  1  627.668 apply to the standard health benefit plan and to the

  2  basic health benefit plan. However, notwithstanding said

  3  provisions, the plans may specify limits on the number of

  4  authorized treatments, if such limits are reasonable and do

  5  not discriminate against any type of provider.

  6         8.  Each small employer carrier that provides for

  7  inpatient and outpatient services by allopathic hospitals may

  8  provide as an option of the insured similar inpatient and

  9  outpatient services by hospitals accredited by the American

10  Osteopathic Association when such services are available and

11  the osteopathic hospital agrees to provide the service.

12         9.  Coverage for an induced abortion and related

13  procedures is required only when such procedures are performed

14  to save the life of the mother.

15         Section 2.  This act shall take effect July 1, 1998.

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18                          SENATE SUMMARY

19    Provides, under the "Employee Health Care Access Act,"
      that insurance carriers that issue health insurance
20    policies covering employees of small businesses need not
      provide coverage for an induced abortion and related
21    procedures unless such procedures are performed to save
      the life of the mother.
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