Senate Bill 1400

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    Florida Senate - 1999                                  SB 1400

    By Senator Burt





    309-1607-99

  1                      A bill to be entitled

  2         An act relating to long-term-care insurance for

  3         public employees; amending s. 110.1227, F.S.;

  4         providing legislative intent; revising duties

  5         of the Department of Elderly Affairs and the

  6         Division of State Group Insurance with respect

  7         to long-term-care insurance for public

  8         employees; providing an effective date.

  9

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

11

12         Section 1.  Section 110.1227, Florida Statutes, 1998

13  Supplement, is amended to read:

14         110.1227  Florida Employee Long-Term-Care Plan Act.--

15         (1)  The Legislature finds that state expenditures for

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

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

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

19         (2)(a)  It is the intent of the Legislature that the

20  Division of State Group Insurance and the Department of

21  Elderly Affairs provide an opportunity for public employees to

22  purchase implement a self-funded or fully insured, voluntary,

23  long-term-care insurance by means of payroll deduction plan

24  for public employees and their families.

25         (3)(b)  The Department of Elderly Affairs and the

26  Division of State Group Insurance shall jointly review design

27  the plan to provide long-term-care insurance offerings to

28  identify those that represent the best value coverage for

29  public employees and family members of public employees. The

30  Division of State Group Insurance and the Department of

31  Elderly Affairs shall enter into an interagency agreement

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    Florida Senate - 1999                                  SB 1400
    309-1607-99




  1  defining their roles with regard to plan development and

  2  design. Joint planning expenses shall be shared to the extent

  3  that funded planning activities are consistent with the goals

  4  of the department and the division. Eligible plan participants

  5  must include active and retired officers and employees of all

  6  branches and agencies of state and local government and their

  7  spouses, children, stepchildren, parents, and parents-in-law;

  8  active and retired federal employees residing in the state and

  9  their spouses, children, stepchildren, parents, and

10  parents-in-law residing in the state; and the surviving

11  spouses, children, stepchildren, parents, and parents-in-law

12  of such deceased officers and employees, whether active or

13  retired at the time of death.

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

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

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

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

18  Affairs.

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

20  Insurance.

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

22  are funded from contributions made by or on behalf of

23  participants and trust fund investment revenue.

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

25  Plan.

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

27  consultation with public employers and employees and

28  representatives from unions and associations representing

29  state, university, local government, and other public

30  employees, establish and supervise the implementation and

31  administration of a self-funded or fully insured

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    Florida Senate - 1999                                  SB 1400
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  1  long-term-care plan entitled "Florida Employee Long-Term-Care

  2  Plan."

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

  4  consultation with the department, the Department of Management

  5  Services, and the Department of Insurance, contract for

  6  actuarial, professional-administrator, and other services for

  7  the Florida Employee Long-Term-Care Plan.

  8         (b)  When contracting for a professional administrator,

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

10  previous experience and expertise in administering group

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

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

13  contractual obligations in the state and in other

14  jurisdictions; the entity's projected administrative costs;

15  the entity's capability to adequately provide service

16  coverage, including a sufficient number of experienced and

17  qualified personnel in the areas of marketing, claims

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

19  accessibility to public employees and other qualified

20  participants; and the entity's financial soundness and

21  solvency.

22         (c)  Any contract with a professional administrator

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

24  held harmless and indemnified for any financial loss caused by

25  the failure of the professional administrator to comply with

26  the terms of the contract.

27         (d)  The division shall explore innovations in

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

29  possible future inclusion in the plan. Such innovative

30  financing and service-delivery mechanisms may include managed

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

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    Florida Senate - 1999                                  SB 1400
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  1  eligibility for Medicaid-funded long-term-care services in the

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

  3  are used to pay for long-term care.

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

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

  6  related to such marketing shall be reimbursed from funds of

  7  the plan.

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

  9  of Administration for the investment of funds in the Florida

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

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

12  Administration on behalf of enrollees and invested and

13  disbursed in accordance with a trust agreement approved by the

14  division and the State Board of Administration and in

15  accordance with the provisions of ss. 215.44-215.53. Moneys in

16  the reserve fund may be used only for the purposes specified

17  in the agreement.

18         (6)  A Florida Employee Long-Term-Care Plan Board of

19  Directors is created, composed of seven members who shall

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

21         (a)  The secretary of the Department of Elderly Affairs

22  shall appoint a member who is a plan participant.

23         (b)  The Insurance Commissioner shall appoint an

24  actuary.

25         (c)  The Attorney General shall appoint an attorney

26  licensed to practice law in this state.

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

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

29         (e)  The division shall appoint a member.

30         (7)  The board of directors of the Florida

31  Long-Term-Care Plan shall:

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    Florida Senate - 1999                                  SB 1400
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  1         (a)  Prepare an annual report of the plan, with the

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

  3  Speaker of the House of Representatives, the President of the

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

  5  and the House of Representatives.

  6         (b)  Approve the appointment of an executive director

  7  jointly recommended by the division and the department to

  8  serve as the chief administrative and operational officer of

  9  the Florida Employee Long-Term-Care Plan.

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

11  administrator contract.

12         (d)  Implement such other policies and procedures as

13  necessary to assure the soundness and efficient operation of

14  the plan.

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

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

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

18  the annual report and other administrative expenses must be

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

20  costs associated with board members or their activities

21  conducted on behalf of and for the benefit of plan

22  beneficiaries.

23         Section 2.  This act shall take effect upon becoming a

24  law.

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26            *****************************************

27                          SENATE SUMMARY

28    Revises the duties of the Department of Elderly Affairs
      and the Division of State Group Insurance with respect to
29    long-term-care insurance for public employees.

30

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