House Bill 4815

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    Florida House of Representatives - 1998                HB 4815

        By the Committee on Financial Services and Representatives
    Safley, Lippman and Bitner





  1                      A bill to be entitled

  2         An act relating to workers' compensation;

  3         amending s. 440.09, F.S.; excluding coverage

  4         under the Defense Base Act; amending s.

  5         440.134, F.S.; providing individually

  6         self-insured employers the option to provide

  7         medical benefits either through managed care

  8         arrangements or without managed care

  9         arrangements; amending s. 440.135, F.S.;

10         modifying the requirements of the 24-hour

11         health insurance coverage pilot programs;

12         amending s. 440.49, F.S.; providing authority

13         to privatize functions and liabilities;

14         providing an effective date.

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

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18         Section 1.  Subsection (2) of section 440.09, Florida

19  Statutes, is amended to read:

20         440.09  Coverage.--

21         (2)  Benefits are not payable in respect of the

22  disability or death of any employee covered by the Federal

23  Employer's Liability Act, the Longshoremen's and Harbor

24  Worker's Compensation Act, the Defense Base Act, or the Jones

25  Act.

26         Section 2.  Paragraph (b) of subsection (2) of section

27  440.134, Florida Statutes, is amended to read:

28         440.134  Workers' compensation managed care

29  arrangement.--

30         (2)

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  1         (b)  Effective January 1, 1997, the employer shall,

  2  subject to the limitations specified elsewhere in this

  3  chapter, furnish to the employee solely through managed care

  4  arrangements such medically necessary remedial treatment,

  5  care, and attendance for such period as the nature of the

  6  injury or the process of recovery requires pursuant to s.

  7  440.13(2)(a) and (b).  An employer that has secured coverage

  8  under s. 440.38(1)(b) as an individual self-insurer or under

  9  s. 440.38(6) shall furnish such medically necessary remedial

10  treatment, care, and attendance to the employee for such a

11  period as the nature or process of recovery may require

12  pursuant to s. 440.13(2)(a) and (b) either through managed

13  care arrangements or without managed care arrangements.

14  Nothing in this subsection shall be construed to prevent an

15  individual self-insurer from implementing or continuing to use

16  managed care arrangements in accordance with this section.

17         Section 3.  Paragraph (f) of subsection (1) of section

18  440.135, Florida Statutes, is amended to read:

19         440.135  Pilot programs for medical and remedial care

20  in workers' compensation.--

21         (1)  It is the intent of the Legislature to determine

22  whether the costs of the workers' compensation system can be

23  effectively contained by monitoring more closely the medical,

24  hospital, and remedial care required by s. 440.13, while

25  providing injured workers with more prompt and effective care

26  and earlier restoration of earning capacity without diminution

27  of the quality of such care. It is the further intent of the

28  Legislature to determine whether the total cost to an employer

29  that provides a policy or plan of health insurance and a

30  separate policy or plan of workers' compensation and

31  employer's liability insurance for its employees can be

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    Florida House of Representatives - 1998                HB 4815

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  1  reduced by combining both coverages under a policy or plan

  2  that provides 24-hour health insurance coverage as set forth

  3  in this section. Therefore, the Legislature authorizes the

  4  establishment of one or more pilot programs to be administered

  5  by the Department of Insurance after consulting with the

  6  division. Each pilot program shall terminate 2 years after the

  7  first date of operation of the program, unless extended by act

  8  of the Legislature. In order to evaluate the feasibility of

  9  implementing these pilot programs, the Department of Insurance

10  shall consult with the division regarding:

11         (f)  Initiating one or more pilot programs under which

12  participating employers would provide a 24-hour health

13  insurance coverage policy to their employees under a single

14  insurance plan policy or self-insured plan that may contain

15  more than one policy. The policy or plan must provide a level

16  of health insurance benefits which meets criteria established

17  by the Department of Insurance but which provides medical

18  benefits for at least occupational injuries and illnesses

19  comparable to those required by this chapter and which may use

20  deductibles and coinsurance provisions that require the

21  employee to pay a portion of the actual medical care received

22  by the employee, notwithstanding any other provisions of this

23  chapter. The policy or plan may also provide indemnity

24  benefits as specified in s. 440.38(1)(e). The employer shall

25  pay the entire workers' compensation portion of the premium

26  for the 24-hour health insurance policy or self-insured plan.

27  The employee may pay all or part of the nonworkers'

28  compensation portion of the premium and all or part of other

29  than the portion of the premium which relates to dependent

30  coverage.

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    Florida House of Representatives - 1998                HB 4815

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  1         Section 4.  Subsection (13) is added to section 440.49,

  2  Florida Statutes, to read:

  3         440.49  Limitation of liability for subsequent injury

  4  through Special Disability Trust Fund.--

  5         (13)  The Department of Labor and Employment Security

  6  is hereby authorized to privatize the Special Disability Trust

  7  Fund.  The department may solicit proposals for one or more

  8  private entities to perform the functions and purchase the

  9  liabilities of the Special Disability Trust Fund on terms and

10  conditions specified by the department.  The terms and

11  conditions may include the issuance of state revenue bonds in

12  principal amounts not to exceed the present value of future

13  claims obligations and any debt service.

14         Section 5.  This act shall take effect upon becoming a

15  law.

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17            *****************************************

18                          HOUSE SUMMARY

19
      Excludes payment of workers' compensation disability or
20    death benefits to workers covered under the Defense Base
      Act. Provides individually self-insured employers the
21    option to provide medical benefits either through managed
      care arrangements or without managed care arrangements.
22    Modifies the requirements of the 24-hour health insurance
      coverage pilot programs. Authorizes privatization of
23    functions and liabilities under the Special Disability
      Trust Fund. See bill for details.
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