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
309-1607-99
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
309-1607-99
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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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.
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