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





                                                  SENATE AMENDMENT

    Bill No. CS for SB 232

    Amendment No.    

                            CHAMBER ACTION
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10                                                                

11  Senator Thomas moved the following amendment:

12

13         Senate Amendment (with title amendment) 

14         On page 3, between lines 19 and 20,

15

16  insert:

17         Section 4.  Paragraph (h) of subsection (3) of section

18  110.123, Florida Statutes, 1998 Supplement, is amended to

19  read:

20         110.123  State group insurance program.--

21         (3)  STATE GROUP INSURANCE PROGRAM.--

22         (h)1.  A person eligible to participate in the state

23  group health insurance plan may be authorized by rules adopted

24  by the division, in lieu of participating in the state group

25  health insurance plan, to exercise an option to elect

26  membership in a health maintenance organization plan which is

27  under contract with the state in accordance with criteria

28  established by this section and by said rules.  The offer of

29  optional membership in a health maintenance organization plan

30  permitted by this paragraph may be limited or conditioned by

31  rule as may be necessary to meet the requirements of state and

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 232

    Amendment No.    





 1  federal laws.

 2         2.  The division shall contract with health maintenance

 3  organizations to participate in the state group insurance

 4  program through a request for proposal based upon a premium

 5  and a minimum benefit package as follows:

 6         a.  A minimum benefit package to be provided by a

 7  participating HMO shall include: physician services; inpatient

 8  and outpatient hospital services; emergency medical services,

 9  including out-of-area emergency coverage; diagnostic

10  laboratory and diagnostic and therapeutic radiologic services;

11  mental health, alcohol, and chemical dependency treatment

12  services meeting the minimum requirements of state and federal

13  law; skilled nursing facilities and services; prescription

14  drugs; and other benefits as may be required by the division.

15  Additional services may be provided subject to the contract

16  between the division and the HMO.

17         b.  A uniform schedule for deductibles and copayments

18  may be established for all participating HMOs.

19         c.  Based upon the minimum benefit package and

20  copayments and deductibles contained in sub-subparagraphs a.

21  and b., the division shall issue a request for proposal for

22  all HMOs which are interested in participating in the state

23  group insurance program.  Upon receipt of all proposals, the

24  division may, as it deems appropriate, enter into contract

25  negotiations with HMOs submitting bids. As part of the request

26  for proposal process, the division may require detailed

27  financial data from each HMO which participates in the bidding

28  process for the purpose of determining the financial stability

29  of the HMO.

30         d.  In determining which HMOs to contract with, the

31  division shall, at a minimum, consider:  each proposed

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 232

    Amendment No.    





 1  contractor's previous experience and expertise in providing

 2  prepaid health benefits; each proposed contractor's historical

 3  experience in enrolling and providing health care services to

 4  participants in the state group insurance program; the cost of

 5  the premiums; the plan's ability to adequately provide service

 6  coverage and administrative support services as determined by

 7  the division; plan benefits in addition to the minimum benefit

 8  package; accessibility to providers; and the financial

 9  solvency of the plan. Nothing shall preclude the division from

10  negotiating regional or statewide contracts with health

11  maintenance organization plans when this is cost-effective and

12  when the division determines the plan has the best overall

13  benefit package for the service areas involved.  However, no

14  HMO shall be eligible for a contract if the HMO's retiree

15  Medicare premium exceeds the retiree rate as set by the

16  division for the state group health insurance plan.

17         e.  The division may limit the number of HMOs that it

18  contracts with in each service area based on the nature of the

19  bids the division receives, the number of state employees in

20  the service area, and any unique geographical characteristics

21  of the service area. The division shall establish by rule

22  service areas throughout the state.

23         f.  All persons participating in the state group

24  insurance program who are required to contribute towards a

25  total state group health premium shall be subject to the same

26  dollar contribution regardless of whether the enrollee enrolls

27  in the state group health insurance plan or in an HMO plan.

28         3.  The division is authorized to negotiate and to

29  contract with specialty psychiatric hospitals for mental

30  health benefits, on a regional basis, for alcohol, drug abuse,

31  and mental and nervous disorders. The division may establish,

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 232

    Amendment No.    





 1  subject to the approval of the Legislature pursuant to

 2  subsection (5), any such regional plan upon completion of an

 3  actuarial study to determine any impact on plan benefits and

 4  premiums.

 5         4.  In addition to contracting pursuant to subparagraph

 6  2., the division shall enter into contract with any HMO to

 7  participate in the state group insurance program which:

 8         a.  Serves greater than 5,000 recipients on a prepaid

 9  basis under the Medicaid program;

10         b.  Does not currently meet the 25 percent

11  non-Medicare/non-Medicaid enrollment composition requirement

12  established by the Department of Health and Human Services

13  excluding participants enrolled in the state group insurance

14  program;

15         c.  Meets the minimum benefit package and copayments

16  and deductibles contained in sub-subparagraphs 2.a. and b.;

17         d.  Is willing to participate in the state group

18  insurance program at a cost of premiums that is not greater

19  than 95 percent of the cost of HMO premiums accepted by the

20  division in each service area; and

21         e.  Meets the minimum surplus requirements of s.

22  641.225.

23

24  The division is authorized to contract with HMOs that meet the

25  requirements of sub-subparagraphs a. through d. prior to the

26  open enrollment period for state employees.  The division is

27  not required to renew the contract with the HMOs as set forth

28  in this paragraph more than twice. Thereafter, the HMOs shall

29  be eligible to participate in the state group insurance

30  program only through the request for proposal process

31  described in subparagraph 2.

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 232

    Amendment No.    





 1         5.  All enrollees in the state group health insurance

 2  plan or any health maintenance organization plan shall have

 3  the option of changing to any other health plan which is

 4  offered by the state within any open enrollment period

 5  designated by the division. Open enrollment shall be held at

 6  least once each calendar year.

 7         6.  When a contract between a treating provider and the

 8  state-contracted health maintenance organization is terminated

 9  for any reason other than for cause, each party shall allow

10  any enrollee for whom treatment was active to continue

11  coverage and care when medically necessary, through completion

12  of treatment of a condition for which the enrollee was

13  receiving care at the time of the termination, until the

14  enrollee selects another treating provider, or until the next

15  open enrollment period offered, whichever is longer, but no

16  longer than 9 months after termination of the contract. Each

17  party to the terminated contract shall allow an enrollee who

18  has initiated a course of prenatal care, regardless of the

19  trimester in which care was initiated, to continue care and

20  coverage until completion of postpartum care. This does not

21  prevent a provider from refusing to continue to provide care

22  to an enrollee who is abusive, noncompliant, or in arrears in

23  payments for services provided. For care continued under this

24  subparagraph, the program and the provider shall continue to

25  be bound by the terms of the terminated contract. Changes made

26  within 30 days after termination of a contract are effective

27  only if agreed to by both parties.

28         7.6.  Any HMO participating in the state group

29  insurance program shall, upon the request of the division,

30  submit to the division standardized data for the purpose of

31  comparison of the appropriateness, quality, and efficiency of

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 232

    Amendment No.    





 1  care provided by the HMO. Such standardized data shall

 2  include:  membership profiles; inpatient and outpatient

 3  utilization by age and sex, type of service, provider type,

 4  and facility; and emergency care experience. Requirements and

 5  timetables for submission of such standardized data and such

 6  other data as the division deems necessary to evaluate the

 7  performance of participating HMOs shall be adopted by rule.

 8         8.7.  The division shall, after consultation with

 9  representatives from each of the unions representing state and

10  university employees, establish a comprehensive package of

11  insurance benefits including, but not limited to, supplemental

12  health and life coverage, dental care, long-term care, and

13  vision care to allow state employees the option to choose the

14  benefit plans which best suit their individual needs.

15         a.  Based upon a desired benefit package, the division

16  shall issue a request for proposal for health insurance

17  providers interested in participating in the state group

18  insurance program, and the division shall issue a request for

19  proposal for insurance providers interested in participating

20  in the non-health-related components of the state group

21  insurance program.  Upon receipt of all proposals, the

22  division may enter into contract negotiations with insurance

23  providers submitting bids or negotiate a specially designed

24  benefit package. Insurance providers offering or providing

25  supplemental coverage as of May 30, 1991, which qualify for

26  pretax benefit treatment pursuant to s. 125 of the Internal

27  Revenue Code of 1986, with 5,500 or more state employees

28  currently enrolled may be included by the division in the

29  supplemental insurance benefit plan established by the

30  division without participating in a request for proposal,

31  submitting bids, negotiating contracts, or negotiating a

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 232

    Amendment No.    





 1  specially designed benefit package.  These contracts shall

 2  provide state employees with the most cost-effective and

 3  comprehensive coverage available; however, no state or agency

 4  funds shall be contributed toward the cost of any part of the

 5  premium of such supplemental benefit plans.

 6         b.  Pursuant to the applicable provisions of s.

 7  110.161, and s. 125 of the Internal Revenue Code of 1986, the

 8  division shall enroll in the pretax benefit program those

 9  state employees who voluntarily elect coverage in any of the

10  supplemental insurance benefit plans as provided by

11  sub-subparagraph a.

12         c.  Nothing herein contained shall be construed to

13  prohibit insurance providers from continuing to provide or

14  offer supplemental benefit coverage to state employees as

15  provided under existing agency plans.

16

17  (Redesignate subsequent sections.)

18

19

20  ================ T I T L E   A M E N D M E N T ===============

21  And the title is amended as follows:

22         On page 1, line 13, after the semicolon,

23

24  insert:

25         amending s. 110.123, F.S.; requiring the

26         state-contracted health maintenance

27         organization to provide an enrollee with

28         continued access to a treating health care

29         provider who loses provider status under the

30         program; providing limitations; providing

31         applicability;

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