Senate Bill 1400e1

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







    SB 1400                                        First Engrossed



  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         revising the Florida Employee Long-Term-Care

  5         Plan Act; requiring the Department of

  6         Management Services and the Department of

  7         Elderly Affairs to provide for long-term-care

  8         insurance through payroll deduction; requiring

  9         the Department of Management Services to review

10         proposals; authorizing the department to award

11         a contract; providing an effective date.

12

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

14

15         Section 1.  Section 110.1227, Florida Statutes, 1998

16  Supplement, is amended to read:

17         110.1227  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         (2)(a)  It is the intent of the Legislature that the

23  Department of Management Services Division of State Group

24  Insurance and the Department of Elderly Affairs provide an

25  opportunity for public employees to purchase implement a

26  self-funded or fully insured, voluntary, long-term-care

27  insurance by means of payroll deduction plan for public

28  employees and their families.

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

30  Department of Management Services Division of State Group

31  Insurance shall jointly review design the plan to provide


                                  1

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






    SB 1400                                        First Engrossed



  1  long-term-care insurance offerings to identify those that

  2  represent the best value coverage for public employees, and

  3  family members of public employees, and retirees. The

  4  Department of Management Services shall review all fully

  5  insured proposals submitted to it by qualified vendors who

  6  have submitted responses to ITN #102A prior to February 23,

  7  1999. Upon review of the proposals, the Department of

  8  Management Services may award a contract to the vendor that

  9  the department deems to represent the best value to public

10  employees, family members of public employees, and retirees.

11  The Division of State Group Insurance and the Department of

12  Elderly Affairs shall enter into an interagency agreement

13  defining their roles with regard to plan development and

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

15  that funded planning activities are consistent with the goals

16  of the department and the division. Eligible plan participants

17  must include active and retired officers and employees of all

18  branches and agencies of state and local government and their

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

20  active and retired federal employees residing in the state and

21  their spouses, children, stepchildren, parents, and

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

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

24  of such deceased officers and employees, whether active or

25  retired at the time of death.

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

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

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

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

30  Affairs.

31


                                  2

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






    SB 1400                                        First Engrossed



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

  2  Insurance.

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

  4  are funded from contributions made by or on behalf of

  5  participants and trust fund investment revenue.

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

  7  Plan.

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

  9  consultation with public employers and employees and

10  representatives from unions and associations representing

11  state, university, local government, and other public

12  employees, establish and supervise the implementation and

13  administration of a self-funded or fully insured

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

15  Plan."

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

17  consultation with the department, the Department of Management

18  Services, and the Department of Insurance, contract for

19  actuarial, professional-administrator, and other services for

20  the Florida Employee Long-Term-Care Plan.

21         (b)  When contracting for a professional administrator,

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

23  previous experience and expertise in administering group

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

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

26  contractual obligations in the state and in other

27  jurisdictions; the entity's projected administrative costs;

28  the entity's capability to adequately provide service

29  coverage, including a sufficient number of experienced and

30  qualified personnel in the areas of marketing, claims

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


                                  3

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






    SB 1400                                        First Engrossed



  1  accessibility to public employees and other qualified

  2  participants; and the entity's financial soundness and

  3  solvency.

  4         (c)  Any contract with a professional administrator

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

  6  held harmless and indemnified for any financial loss caused by

  7  the failure of the professional administrator to comply with

  8  the terms of the contract.

  9         (d)  The division shall explore innovations in

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

11  possible future inclusion in the plan. Such innovative

12  financing and service-delivery mechanisms may include managed

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

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

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

16  are used to pay for long-term care.

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

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

19  related to such marketing shall be reimbursed from funds of

20  the plan.

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

22  of Administration for the investment of funds in the Florida

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

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

25  Administration on behalf of enrollees and invested and

26  disbursed in accordance with a trust agreement approved by the

27  division and the State Board of Administration and in

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

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

30  in the agreement.

31


                                  4

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






    SB 1400                                        First Engrossed



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

  2  Directors is created, composed of seven members who shall

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

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

  5  shall appoint a member who is a plan participant.

  6         (b)  The Insurance Commissioner shall appoint an

  7  actuary.

  8         (c)  The Attorney General shall appoint an attorney

  9  licensed to practice law in this state.

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

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

12         (e)  The division shall appoint a member.

13         (7)  The board of directors of the Florida

14  Long-Term-Care Plan shall:

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

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

17  Speaker of the House of Representatives, the President of the

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

19  and the House of Representatives.

20         (b)  Approve the appointment of an executive director

21  jointly recommended by the division and the department to

22  serve as the chief administrative and operational officer of

23  the Florida Employee Long-Term-Care Plan.

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

25  administrator contract.

26         (d)  Implement such other policies and procedures as

27  necessary to assure the soundness and efficient operation of

28  the plan.

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

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

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


                                  5

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






    SB 1400                                        First Engrossed



  1  the annual report and other administrative expenses must be

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

  3  costs associated with board members or their activities

  4  conducted on behalf of and for the benefit of plan

  5  beneficiaries.

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

  7  law.

  8

  9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31


                                  6