Senate Bill 1400e1
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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.
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13 Be It Enacted by the Legislature of the State of Florida:
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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
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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.
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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
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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.
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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
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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.
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