CODING: Words stricken are deletions; words underlined are additions.
SENATE AMENDMENT
Bill No. CS for SB 2280
Amendment No.
CHAMBER ACTION
Senate House
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11 Senator Burt moved the following amendment:
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13 Senate Amendment (with title amendment)
14 On page 6, line 13, through page 10, line 29, delete
15 those lines
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17 and insert:
18 Section 2. Section 110.1227, Florida Statutes, 1998
19 Supplement, is amended to read:
20 110.1227 Florida Employee Long-Term-Care Plan Act.--
21 (1) The Legislature finds that state expenditures for
22 long-term-care services continue to increase at a rapid rate
23 and that the state faces increasing pressure in its efforts to
24 meet the long-term-care needs of the public.
25 (2)(a) It is the intent of the Legislature that the
26 Department of Management Services Division of State Group
27 Insurance and the Department of Elderly Affairs provide an
28 opportunity for public employees to purchase implement a
29 self-funded or fully insured, voluntary, long-term-care
30 insurance by means of payroll deduction plan for public
31 employees and their families.
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SENATE AMENDMENT
Bill No. CS for SB 2280
Amendment No.
1 (3)(b) The Department of Elderly Affairs and the
2 Department of Management Services Division of State Group
3 Insurance shall jointly review design the plan to provide
4 long-term-care insurance offerings to identify those that
5 represent the best value coverage for public employees, and
6 family members of public employees, and retirees. The
7 Department of Management Services shall review all fully
8 insured proposals submitted to it by qualified vendors who
9 have submitted responses to ITN #102A prior to February 23,
10 1999. Upon review of the proposals, the Department of
11 Management Services may award a contract to the vendor that
12 the department deems to represent the best value to public
13 employees, family members of public employees, and retirees.
14 The Division of State Group Insurance and the Department of
15 Elderly Affairs shall enter into an interagency agreement
16 defining their roles with regard to plan development and
17 design. Joint planning expenses shall be shared to the extent
18 that funded planning activities are consistent with the goals
19 of the department and the division. Eligible plan participants
20 must include active and retired officers and employees of all
21 branches and agencies of state and local government and their
22 spouses, children, stepchildren, parents, and parents-in-law;
23 active and retired federal employees residing in the state and
24 their spouses, children, stepchildren, parents, and
25 parents-in-law residing in the state; and the surviving
26 spouses, children, stepchildren, parents, and parents-in-law
27 of such deceased officers and employees, whether active or
28 retired at the time of death.
29 (c) This act in no way affects the Division of State
30 Group Insurance's authority pursuant to s. 110.123.
31 (2) As used in this section, the term:
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SENATE AMENDMENT
Bill No. CS for SB 2280
Amendment No.
1 (a) "Department" means the Department of Elderly
2 Affairs.
3 (b) "Division" means the Division of State Group
4 Insurance.
5 (c) "Self-funded" means that plan benefits and costs
6 are funded from contributions made by or on behalf of
7 participants and trust fund investment revenue.
8 (d) "Plan" means the Florida Employee Long-Term-Care
9 Plan.
10 (3) The division and the department shall, in
11 consultation with public employers and employees and
12 representatives from unions and associations representing
13 state, university, local government, and other public
14 employees, establish and supervise the implementation and
15 administration of a self-funded or fully insured
16 long-term-care plan entitled "Florida Employee Long-Term-Care
17 Plan."
18 (a) The division and the department shall, in
19 consultation with the department, the Department of Management
20 Services, and the Department of Insurance, contract for
21 actuarial, professional-administrator, and other services for
22 the Florida Employee Long-Term-Care Plan.
23 (b) When contracting for a professional administrator,
24 the division shall consider, at a minimum, the entity's
25 previous experience and expertise in administering group
26 long-term-care self-funded plans or long-term-care insurance
27 programs; the entity's demonstrated ability to perform its
28 contractual obligations in the state and in other
29 jurisdictions; the entity's projected administrative costs;
30 the entity's capability to adequately provide service
31 coverage, including a sufficient number of experienced and
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SENATE AMENDMENT
Bill No. CS for SB 2280
Amendment No.
1 qualified personnel in the areas of marketing, claims
2 processing, recordkeeping, and underwriting; the entity's
3 accessibility to public employees and other qualified
4 participants; and the entity's financial soundness and
5 solvency.
6 (c) Any contract with a professional administrator
7 entered into by the division must require that the state be
8 held harmless and indemnified for any financial loss caused by
9 the failure of the professional administrator to comply with
10 the terms of the contract.
11 (d) The division shall explore innovations in
12 long-term-care financing and service delivery with regard to
13 possible future inclusion in the plan. Such innovative
14 financing and service-delivery mechanisms may include managed
15 long-term care and plans that set aside assets with regard to
16 eligibility for Medicaid-funded long-term-care services in the
17 same proportion that private long-term-care insurance benefits
18 are used to pay for long-term care.
19 (4) The division and the department shall coordinate,
20 directly or through contract, marketing of the plan. Expenses
21 related to such marketing shall be reimbursed from funds of
22 the plan.
23 (5) The division shall contract with the State Board
24 of Administration for the investment of funds in the Florida
25 Employee Long-Term-Care Plan reserve fund. Plan funds are not
26 state funds. The moneys shall be held by the State Board of
27 Administration on behalf of enrollees and invested and
28 disbursed in accordance with a trust agreement approved by the
29 division and the State Board of Administration and in
30 accordance with the provisions of ss. 215.44-215.53. Moneys in
31 the reserve fund may be used only for the purposes specified
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SENATE AMENDMENT
Bill No. CS for SB 2280
Amendment No.
1 in the agreement.
2 (6) A Florida Employee Long-Term-Care Plan Board of
3 Directors is created, composed of seven members who shall
4 serve 2-year terms, to be appointed as follows:
5 (a) The secretary of the Department of Elderly Affairs
6 shall appoint a member who is a plan participant.
7 (b) The Insurance Commissioner shall appoint an
8 actuary.
9 (c) The Attorney General shall appoint an attorney
10 licensed to practice law in this state.
11 (d) The Governor shall appoint three members from a
12 broad cross-section of the residents of this state.
13 (e) The division shall appoint a member.
14 (7) The board of directors of the Florida
15 Long-Term-Care Plan shall:
16 (a) Prepare an annual report of the plan, with the
17 assistance of an actuarial consultant, to be submitted to the
18 Speaker of the House of Representatives, the President of the
19 Senate, the Governor, and the Minority Leaders of the Senate
20 and the House of Representatives.
21 (b) Approve the appointment of an executive director
22 jointly recommended by the division and the department to
23 serve as the chief administrative and operational officer of
24 the Florida Employee Long-Term-Care Plan.
25 (c) Approve the terms of the division's third-party
26 administrator contract.
27 (d) Implement such other policies and procedures as
28 necessary to assure the soundness and efficient operation of
29 the plan.
30 (8) Members of the board may not receive a salary, but
31 may be reimbursed for travel, per diem, and administrative
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Amendment No.
1 expenses related to their duties. Board expenses and costs for
2 the annual report and other administrative expenses must be
3 borne by the plan. State funds may not be contributed toward
4 costs associated with board members or their activities
5 conducted on behalf of and for the benefit of plan
6 beneficiaries.
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9 ================ T I T L E A M E N D M E N T ===============
10 And the title is amended as follows:
11 On page 1, line 29, after the semicolon,
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13 insert:
14 revising the Florida Employee Long-Term-Care
15 Plan Act; requiring the Department of
16 Management Services and the Department of
17 Elderly Affairs to provide for long-term-care
18 insurance through payroll deduction; requiring
19 the Department of Management Services to review
20 proposals; authorizing the department to award
21 a contract;
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