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


H

Senator Williams moved the following amendment:



                                                  SENATE AMENDMENT

    Bill No. CS/HB 4283

    Amendment No.    

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11  Senator Williams 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.  Florida Employee Long-Term-Care Plan Act.--

18         (1)  The Legislature finds that state expenditures for

19  long-term-care services continue to increase at a rapid rate

20  and that the state faces increasing pressure in its efforts to

21  meet the long-term-care needs of the public.

22         (a)  It is the intent of the Legislature that the

23  Division of State Group Insurance and the Department of

24  Elderly Affairs implement a self-funded or fully insured,

25  voluntary, long-term-care plan for public employees and their

26  families.

27         (b)  The Department of Elderly Affairs and the Division

28  of State Group Insurance shall jointly design the plan to

29  provide long-term-care coverage for public employees and

30  family members of public employees. The Division of State

31  Group Insurance and the Department of Elderly Affairs shall

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 4283

    Amendment No.    





 1  enter into an interagency agreement defining their roles with

 2  regard to plan development and design. Joint planning expenses

 3  shall be shared to the extent that funded planning activities

 4  are consistent with the goals of the department and the

 5  division. Eligible plan participants must include active and

 6  retired officers and employees of all branches and agencies of

 7  state and local government and their spouses, children,

 8  stepchildren, parents, and parents-in-law; active and retired

 9  federal employees residing in the state and their spouses,

10  children, stepchildren, parents, and parents-in-law residing

11  in the state; and the surviving spouses, children,

12  stepchildren, parents, and parents-in-law of such deceased

13  officers and employees, whether active or retired at the time

14  of death.

15         (c)  This act in no way affects the Division of State

16  Group Insurance's authority pursuant to s. 110.123.

17         (2)  As used in this section, the term:

18         (a)  "Department" means the Department of Elderly

19  Affairs.

20         (b)  "Division" means the Division of State Group

21  Insurance.

22         (c)  "Self-funded" means that plan benefits and costs

23  are funded from contributions made by or on behalf of

24  participants and trust fund investment revenue.

25         (d)  "Plan" means the Florida Employee Long-Term-Care

26  Plan.

27         (3)  The division and the department shall, in

28  consultation with public employers and employees and

29  representatives from unions and associations representing

30  state, university, local government, and other public

31  employees, establish and supervise the implementation and

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 4283

    Amendment No.    





 1  administration of a self-funded or fully insured

 2  long-term-care plan entitled "Florida Employee Long-Term-Care

 3  Plan."

 4         (a)  The division shall, in consultation with the

 5  department, the Department of Management Services, and the

 6  Department of Insurance, contract for actuarial,

 7  professional-administrator, and other services for the Florida

 8  Employee Long-Term-Care Plan.

 9         (b)  When contracting for a professional administrator,

10  the division shall consider, at a minimum, the entity's

11  previous experience and expertise in administering group

12  long-term-care self-funded plans or long-term-care insurance

13  programs; the entity's demonstrated ability to perform its

14  contractual obligations in the state and in other

15  jurisdictions; the entity's projected administrative costs;

16  the entity's capability to adequately provide service

17  coverage, including a sufficient number of experienced and

18  qualified personnel in the areas of marketing, claims

19  processing, recordkeeping, and underwriting; the entity's

20  accessibility to public employees and other qualified

21  participants; and the entity's financial soundness and

22  solvency.

23         (c)  Any contract with a professional administrator

24  entered into by the division must require that the state be

25  held harmless and indemnified for any financial loss caused by

26  the failure of the professional administrator to comply with

27  the terms of the contract.

28         (d)  The division shall explore innovations in

29  long-term-care financing and service delivery with regard to

30  possible future inclusion in the plan. Such innovative

31  financing and service-delivery mechanisms may include managed

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 4283

    Amendment No.    





 1  long-term care and plans that set aside assets with regard to

 2  eligibility for Medicaid-funded long-term-care services in the

 3  same proportion that private long-term-care insurance benefits

 4  are used to pay for long-term care.

 5         (4)  The division and the department shall coordinate,

 6  directly or through contract, marketing of the plan. Expenses

 7  related to such marketing shall be reimbursed from funds of

 8  the plan.

 9         (5)  The division shall contract with the State Board

10  of Administration for the investment of funds in the Florida

11  Employee Long-Term-Care Plan reserve fund. Plan funds are not

12  state funds. The moneys shall be held by the State Board of

13  Administration on behalf of enrollees and invested and

14  disbursed in accordance with a trust agreement approved by the

15  division and the State Board of Administration and in

16  accordance with the provisions of sections 215.44-215.53,

17  Florida Statutes. Moneys in the reserve fund may be used only

18  for the purposes specified in the agreement.

19         (6)  A Florida Employee Long-term Care Plan Board of

20  Directors is created, composed of seven members who shall

21  serve 2-year terms, to be appointed as follows:

22         (a)  The Secretary of the Department of Elderly Affairs

23  shall appoint a member who is a plan participant.

24         (b)  The Insurance Commissioner shall appoint an

25  actuary.

26         (c)  The Attorney General shall appoint an attorney

27  licensed to practice law in this state.

28         (d)  The Governor shall appoint three members from a

29  broad cross-section of the residents of this state.

30         (e)  The division shall appoint a member.

31         (7)  The board of directors of the Florida Long-term

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 4283

    Amendment No.    





 1  Care Plan shall:

 2         (a)  Prepare an annual report of the plan, with the

 3  assistance of an actuarial consultant, to be submitted to the

 4  Speaker of the House of Representatives, the President of the

 5  Senate, the Governor, and the Minority Leaders of the Senate

 6  and the House of Representatives.

 7         (b)  Approve the appointment of an executive director

 8  jointly recommended by the division and the department to

 9  serve as the chief administrative and operational officer of

10  the Florida Employee Long-term Care Plan.

11         (c)  Approve the terms of the division's third-party

12  administrator contract.

13         (d)  Implement such other policies and procedures as

14  necessary to assure the soundness and efficient operation of

15  the plan.

16         (8)  Members of the board may not receive a salary, but

17  may be reimbursed for travel, per diem, and administrative

18  expenses related to their duties. Board expenses and costs for

19  the annual report and other administrative expenses must be

20  borne by the plan. State funds may not be contributed toward

21  costs associated with board members or their activities

22  conducted on behalf of and for the benefit of plan

23  beneficiaries.

24         (9)  This section expires July 1, 1999.

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

26  however, no action to award a contract or implement any plan

27  of care shall occur prior to July 1, 1999.

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

31  And the title is amended as follows:

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 4283

    Amendment No.    





 1         Delete everything before the enacting clause

 2

 3  and insert:

 4                      A bill to be entitled

 5         An act relating to long-term care; requiring

 6         the Department of Elderly Affairs and the

 7         Division of State Group Insurance to design a

 8         long-term-care plan for public employees and

 9         their families; requiring the division to

10         coordinate marketing of the plan; providing for

11         use of plan funds for marketing expenses;

12         authorizing the division to contract with the

13         State Board of Administration to invest certain

14         funds; providing limitations; creating a

15         Florida Employee Long-Term-Care Plan Board of

16         Directors; providing for board membership,

17         terms, and duties; requiring an annual report;

18         providing for expenses of the board;

19         prohibiting use of state funds for certain

20         costs; providing for expiration of the act;

21         providing an effective date.

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