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





                                                  SENATE AMENDMENT

    Bill No. HB 41, 3rd Eng.

    Amendment No.    

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11  Senator Grant moved the following amendment:

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13         Senate Amendment (with title amendment) 

14         Delete everything after the enacting clause

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16  and insert:

17         Section 1.  This act may be cited as the "Dianne Steele

18  Mental Illness Insurance Parity Act."

19         Section 2.  Section 627.668, Florida Statutes, is

20  amended to read:

21         627.668  Optional coverage for mental and nervous

22  disorders required; exception.--

23         (1)  Every insurer, health maintenance organization,

24  and nonprofit hospital and medical service plan corporation

25  transacting group health insurance or providing prepaid health

26  care in this state shall make available to the policyholder as

27  part of the application, for an appropriate additional premium

28  under a group hospital and medical expense-incurred insurance

29  policy, under a group prepaid health care contract, and under

30  a group hospital and medical service plan contract, the

31  benefits or level of benefits specified in subsection (2) for

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                                                  SENATE AMENDMENT

    Bill No. HB 41, 3rd Eng.

    Amendment No.    





 1  the necessary care and treatment of mental and nervous

 2  disorders, as defined in the standard nomenclature of the

 3  American Psychiatric Association, except that this section

 4  does not apply to coverage for serious mental illness as

 5  defined in s. 627.6681. The coverage required in this section

 6  is subject to the right of the applicant for a group policy or

 7  contract to select any alternative benefits or level of

 8  benefits as may be offered by the insurer, health maintenance

 9  organization, or service plan corporation provided that, if

10  alternate inpatient, outpatient, or partial hospitalization

11  benefits are selected, such benefits shall not be less than

12  the level of benefits required under paragraph (2)(a),

13  paragraph (2)(b), or paragraph (2)(c), respectively.

14         (2)  Under group policies or contracts, inpatient

15  hospital benefits, partial hospitalization benefits, and

16  outpatient benefits provided under this section, consisting of

17  durational limits, dollar amounts, deductibles, and

18  coinsurance factors must shall not be less favorable than for

19  physical illness generally, except that:

20         (a)  Inpatient benefits may be limited to not less than

21  30 days per benefit year as defined in the policy or contract.

22  If inpatient hospital benefits are provided beyond 30 days per

23  benefit year, the durational limits, dollar amounts, and

24  coinsurance factors thereto need not be the same as applicable

25  to physical illness generally.

26         (b)  Outpatient benefits may be limited to $1,000 for

27  consultations with a licensed physician, a psychologist

28  licensed pursuant to chapter 490, a mental health counselor

29  licensed pursuant to chapter 491, a marriage and family

30  therapist licensed pursuant to chapter 491, and a clinical

31  social worker licensed pursuant to chapter 491.  If benefits

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                                                  SENATE AMENDMENT

    Bill No. HB 41, 3rd Eng.

    Amendment No.    





 1  are provided beyond the $1,000 per benefit year, the

 2  durational limits, dollar amounts, and coinsurance factors

 3  thereof need not be the same as applicable to physical illness

 4  generally.

 5         (c)  Partial hospitalization benefits shall be provided

 6  under the direction of a licensed physician.  For purposes of

 7  this part, the term "partial hospitalization services" is

 8  defined as those services offered by a program accredited by

 9  the Joint Commission on Accreditation of Hospitals (JCAH) or

10  in compliance with equivalent standards.  Alcohol

11  rehabilitation programs accredited by the Joint Commission on

12  Accreditation of Hospitals or approved by the state and

13  licensed drug abuse rehabilitation programs shall also be

14  qualified providers under this section.  In any benefit year,

15  if partial hospitalization services or a combination of

16  inpatient and partial hospitalization are utilized, the total

17  benefits paid for all such services shall not exceed the cost

18  of 30 days of inpatient hospitalization for psychiatric

19  services, including physician fees, which prevail in the

20  community in which the partial hospitalization services are

21  rendered.  If partial hospitalization services benefits are

22  provided beyond the limits set forth in this paragraph, the

23  durational limits, dollar amounts, and coinsurance factors

24  thereof need not be the same as those applicable to physical

25  illness generally.

26         (3)  Insurers that provide coverage under this section

27  and s. 627.6681 must maintain strict confidentiality regarding

28  psychiatric and psychotherapeutic records submitted to an

29  insurer for the purpose of reviewing a claim for benefits

30  payable under this section.  These records submitted to an

31  insurer are subject to the limitations of s. 455.241, relating

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                                                  SENATE AMENDMENT

    Bill No. HB 41, 3rd Eng.

    Amendment No.    





 1  to the furnishing of patient records.

 2         Section 3.  Section 627.6681, Florida Statutes, is

 3  created to read:

 4         627.6681  Coverage for serious mental illness

 5  required.--

 6         (1)  Every insurer and health maintenance organization

 7  transacting group health insurance or providing prepaid health

 8  care in this state shall provide as part of such insurance or

 9  health care under a group hospital and medical

10  expense-incurred insurance policy, under a group prepaid

11  health care contract, or under a group health maintenance

12  organization contract, coverage for the treatment of serious

13  mental illness, which treatment is determined to be medically

14  necessary.

15         (2)  Under group policies or contracts, inpatient

16  hospital benefits, partial hospitalization benefits, and

17  outpatient benefits consisting of durational limits, dollar

18  amounts, deductibles, and coinsurance factors must be the same

19  for serious mental illness as for physical illness generally.

20  Notwithstanding the provisions of this subsection, an insurer

21  or health maintenance organization may limit inpatient

22  coverage to 45 days per year and may limit outpatient coverage

23  to 60 visits per year.

24         (3)  This section does not apply to any group health

25  plan, or group health insurance covered in connection with a

26  group health plan, for any plan year of a small employer as

27  defined in s. 627.6699.

28         (4)  As used in this section, the term "serious mental

29  illness" means the following psychiatric illnesses as defined

30  by the American Psychiatric Association in the most current

31  edition of the Diagnostic and Statistical Manual:

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                                                  SENATE AMENDMENT

    Bill No. HB 41, 3rd Eng.

    Amendment No.    





 1  schizophrenia, schizoaffective disorder, panic disorder,

 2  bipolar affective disorder, major depressive disorder, and

 3  specific obsessive-compulsive disorder.

 4         (5)  Notwithstanding other provisions of this section,

 5  chapter 641, s. 627.6471, or s. 627.6472, an insurer or health

 6  maintenance organization may require that the covered services

 7  required by this section be provided by an exclusive provider

 8  of health care, or a group of exclusive providers of health

 9  care, which has entered into a written agreement with the

10  insurer or health maintenance organization to provide benefits

11  under this section. The insurer or health maintenance

12  organization may condition the payment of such benefits, in

13  whole or in part, on the use of such exclusive providers.

14         (6)  The insurer or health maintenance organization may

15  directly or indirectly enter into a capitation contract with

16  an exclusive provider of health care or a group of exclusive

17  providers of health care to provide benefits under this

18  section. In providing the benefits under this section, the

19  insurer or health maintenance organization may impose other

20  appropriate financial incentives, peer review, and utilization

21  requirements to reduce service costs and utilization without

22  compromising quality of care.

23         (7)  This section does not apply with respect to a

24  group health plan, or health insurance coverage offered in

25  connection with a group health plan, if the application of

26  this section to such plan or coverage results in an increase

27  in the cost under the plan or for such coverage of at least 2

28  percent, as determined by the department upon a filing by an

29  insurer or health maintenance organization demonstrating such

30  an increase based on actual claims experience of at least 6

31  months.

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                                                  SENATE AMENDMENT

    Bill No. HB 41, 3rd Eng.

    Amendment No.    





 1         Section 4.  Subsection (17) is added to section

 2  627.6472, Florida Statutes, to read:

 3         627.6472  Exclusive provider organizations.--

 4         (17)  Each exclusive provider organization that offers

 5  a group plan within this state must comply with s. 627.6681.

 6         Section 5.  Subsection (8) is added to section

 7  627.6515, Florida Statutes, to read:

 8         627.6515  Out-of-state groups.--

 9         (8)  Each group, blanket, and franchise health

10  insurance policy that offers a group plan within this state

11  must comply with s. 627.6681.

12         Section 6.  Subsection (34) is added to section 641.31,

13  Florida Statutes, to read:

14         641.31  Health maintenance contracts.--

15         (34)  Each group health maintenance organization

16  contract offered must comply with s. 627.6681.

17         Section 7.  There is appropriated to the Department of

18  Insurance from the Insurance Commissioner's Regulatory Trust

19  Fund for fiscal year 1998-1999 one full-time equivalent

20  position and $38,288 to implement the provisions of this act.

21         Section 8.  The provisions of this act fulfill an

22  important state interest in that they promote the relief and

23  alleviation of health or medical problems that affect

24  significant portions of the state's population.  The act, in

25  requiring insurance coverage, will facilitate closer scrutiny

26  of the treatment of these conditions, resulting in more

27  cost-efficient and effective treatment of such conditions.  By

28  improving the overall level and quality of health care, the

29  act will reduce total costs of medical plans under which

30  treatment is provided for these conditions, thereby reducing

31  public medical assistance benefits as well as expenditures for

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                                                  SENATE AMENDMENT

    Bill No. HB 41, 3rd Eng.

    Amendment No.    





 1  persons covered under all medical plans.

 2         Section 9.  This act shall take effect January 1, 1999,

 3  and applies to any policy issued, written, or renewed in this

 4  state on or after such date.

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 6

 7  ================ T I T L E   A M E N D M E N T ===============

 8  And the title is amended as follows:

 9         Delete everything before the enacting clause

10

11  and insert:

12                      A bill to be entitled

13         An act relating to health insurance; providing

14         a short title; amending s. 627.668, F.S.;

15         providing that the current requirement for

16         group insurers to offer coverage for mental

17         health conditions does not apply to serious

18         mental illness; creating s. 627.6681, F.S.;

19         requiring group health insurers and health

20         maintenance organizations to provide coverage

21         for serious mental illness; requiring benefits

22         to be the same as for physical illness

23         generally; exempting group health plans or

24         coverage for a small employer, as defined;

25         providing a definition; providing authority for

26         certain manuals to be updated by rule;

27         authorizing an insurer to require services to

28         be provided by an exclusive provider of care;

29         authorizing an insurer to enter into a

30         capitation contract with an exclusive provider

31         of care to provide benefits; providing

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                                                  SENATE AMENDMENT

    Bill No. HB 41, 3rd Eng.

    Amendment No.    





 1         exemption for coverage; amending ss. 627.6472,

 2         627.6515, 641.31, F.S., relating to exclusive

 3         provider organizations, out-of-state groups,

 4         and health maintenance contracts; providing

 5         requirements for coverage compliance; providing

 6         an appropriation; providing a description of

 7         state interest; providing an effective date.

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