Senate Bill 2152c1

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    Florida Senate - 2000                           CS for SB 2152

    By the Committee on Governmental Oversight and Productivity;
    and Senator Latvala




    302-2198-00

  1                      A bill to be entitled

  2         An act relating to health insurance; amending

  3         s. 216.136, F.S.; creating the Mandated Health

  4         Insurance Benefits and Providers Estimating

  5         Conference; providing for membership and duties

  6         of the conference; providing duties of

  7         legislative committees that have jurisdiction

  8         over health insurance matters; amending s.

  9         624.215, F.S.; providing that certain

10         legislative proposals must be submitted to and

11         assessed by the conference, rather than the

12         Agency for Health Care Administration; amending

13         guidelines for assessing the impact of a

14         proposal to legislatively mandate certain

15         health coverage; providing prerequisites to

16         legislative consideration of such proposals;

17         providing an effective date.

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

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21         Section 1.  Subsection (12) is added to section

22  216.136, Florida Statutes, to read:

23         216.136  Consensus estimating conferences; duties and

24  principals.--

25         (12)  MANDATED HEALTH INSURANCE BENEFITS AND PROVIDERS

26  ESTIMATING CONFERENCE.--

27         (a)  Duties.--The Mandated Health Insurance Benefits

28  and Providers Estimating Conference shall:

29         1.  Develop and maintain, with the Department of

30  Insurance, a system and program of data collection to assess

31  the impact of mandated benefits and providers, including costs

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    Florida Senate - 2000                           CS for SB 2152
    302-2198-00




  1  to employers and insurers, impact of treatment, cost savings

  2  in the health care system, number of providers, and other

  3  appropriate data.

  4         2.  Prescribe the format, content, and timing of

  5  information that is to be submitted to the conference and used

  6  by the conference in its assessment of proposed and existing

  7  mandated benefits and providers. Such format, content, and

  8  timing requirements are binding upon all parties submitting

  9  information for the conference to use in its assessment of

10  proposed and existing mandated benefits and providers.

11         3.  Provide assessments of proposed and existing

12  mandated benefits and providers and other studies of mandated

13  benefits and provider issues as requested by the Legislature

14  or the Governor. When a legislative measure containing a

15  mandated health insurance benefit or provider is proposed, the

16  standing committee of the Legislature which has jurisdiction

17  over the proposal shall request that the conference prepare

18  and forward to the Governor and the Legislature a study that

19  provides, for each measure, a cost-benefit analysis that

20  assesses the social and financial impact and the medical

21  efficacy according to prevailing medical standards of the

22  proposed mandate. The conference has 12 months after the

23  committee makes its request in which to complete and submit

24  the conference's report. The standing committee may not

25  consider such a proposed legislative measure until 12 months

26  after it has requested the conference's report on the measure.

27         4.  The standing committees of the Legislature which

28  have jurisdiction over health insurance matters shall request

29  that the conference assess the social and financial impact and

30  the medical efficacy of existing mandated benefits and

31  providers. The committees shall submit to the conference by

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    Florida Senate - 2000                           CS for SB 2152
    302-2198-00




  1  January 1, 2001, a schedule of evaluations that sets forth the

  2  respective dates by which the conference must have completed

  3  its evaluations of particular existing mandates.

  4         (b)  Principals.--The Executive Office of the Governor,

  5  the Insurance Commissioner, the Director of the Division of

  6  Economic and Demographic Research of the Joint Legislative

  7  Management Committee, and professional staff of the Senate and

  8  the House of Representatives who have health insurance

  9  expertise, or their designees, are the principals of the

10  Mandated Health Insurance Benefits and Providers Estimating

11  Conference. The responsibility of presiding over sessions of

12  the conference shall be rotated among the principals.

13         Section 2.  Section 624.215, Florida Statutes, is

14  amended to read:

15         624.215  Proposals for legislation which mandates

16  health benefit coverage; review by Legislature.--

17         (1)  LEGISLATIVE INTENT.--The Legislature finds that

18  there is an increasing number of proposals which mandate that

19  certain health benefits be provided by insurers and health

20  maintenance organizations as components of individual and

21  group policies.  The Legislature further finds that many of

22  these benefits provide beneficial social and health

23  consequences which may be in the public interest.  However,

24  the Legislature also recognizes that most mandated benefits

25  contribute to the increasing cost of health insurance

26  premiums.  Therefore, it is the intent of the Legislature to

27  conduct a systematic review of current and proposed mandated

28  or mandatorily offered health coverages and to establish

29  guidelines for such a review.  This review will assist the

30  Legislature in determining whether mandating a particular

31  coverage is in the public interest.

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    Florida Senate - 2000                           CS for SB 2152
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  1         (2)  MANDATED HEALTH COVERAGE; REPORT TO THE MANDATED

  2  HEALTH INSURANCE BENEFITS AND PROVIDERS ESTIMATING CONFERENCE

  3  AGENCY FOR HEALTH CARE ADMINISTRATION AND LEGISLATIVE

  4  COMMITTEES; GUIDELINES FOR ASSESSING IMPACT.--Every person or

  5  organization seeking consideration of a legislative proposal

  6  which would mandate a health coverage or the offering of a

  7  health coverage by an insurance carrier, health care service

  8  contractor, or health maintenance organization as a component

  9  of individual or group policies, shall submit to the Mandated

10  Health Insurance Benefits and Providers Estimating Conference

11  Agency for Health Care Administration and the legislative

12  committees having jurisdiction a report which assesses the

13  social and financial impacts of the proposed coverage.

14  Guidelines for assessing the impact of a proposed mandated or

15  mandatorily offered health coverage must, to the extent that

16  information is available, shall include:

17         (a)  To what extent is the treatment or service

18  generally used by a significant portion of the population.

19         (b)  To what extent is the insurance coverage generally

20  available.

21         (c)  If the insurance coverage is not generally

22  available, to what extent does the lack of coverage result in

23  persons avoiding necessary health care treatment.

24         (d)  If the coverage is not generally available, to

25  what extent does the lack of coverage result in unreasonable

26  financial hardship.

27         (e)  The level of public demand for the treatment or

28  service.

29         (f)  The level of public demand for insurance coverage

30  of the treatment or service.

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    Florida Senate - 2000                           CS for SB 2152
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  1         (g)  The level of interest of collective bargaining

  2  agents in negotiating for the inclusion of this coverage in

  3  group contracts.

  4         (h)  A report of the extent to which To what extent

  5  will the coverage will increase or decrease the cost of the

  6  treatment or service.

  7         (i)  A report of the extent to which To what extent

  8  will the coverage will increase the appropriate uses of the

  9  treatment or service.

10         (j)  A report of the extent to which To what extent

11  will the mandated treatment or service will be a substitute

12  for a more expensive treatment or service.

13         (k)  A report of the extent to which To what extent

14  will the coverage will increase or decrease the administrative

15  expenses of insurance companies and the premium and

16  administrative expenses of policyholders.

17         (l)  A report as to the impact of this coverage on the

18  total cost of health care.

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20  The reports required in paragraphs (h) through (l) shall be

21  reviewed by the Mandated Health Insurance Benefits and

22  Providers Conference using a certified actuary. The standing

23  committee of the Legislature which has jurisdiction over the

24  legislative proposal must request and receive a report from

25  the Mandated Health Insurance Benefits and Providers

26  Estimating Conference before the committee considers the

27  proposal. The committee may not consider a legislative

28  proposal that would mandate a health coverage or the offering

29  of a health coverage by an insurance carrier, health care

30  service contractor, or health maintenance organization until

31  after the committee's request to the Mandated Health Insurance

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    Florida Senate - 2000                           CS for SB 2152
    302-2198-00




  1  Benefits and Providers Estimating Conference has been

  2  answered. As used in this section, the term "health coverage

  3  mandate" includes mandating the use of a type of provider.

  4         Section 3.  This act shall take effect July 1, 2000.

  5

  6          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  7                             SB 2152

  8

  9  Modifies the bill by restoring current statutory language
    which provides that guidelines for assessing the impact of a
10  proposed mandated or mandatorily offered health coverage, to
    the extent that the information is available, include certain
11  items.

12  Removes requirement that the reports filed by persons or
    organizations seeking a mandated health benefit be prepared by
13  a certified actuary. Instead authorizes the committee to have
    them reviewed by a certified actuary.
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     Makes technical and grammatical changes.
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