House Bill 0549
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    Florida House of Representatives - 2000                 HB 549
        By Representative Boyd
  1                      A bill to be entitled
  2         An act relating to state group insurance
  3         program; amending s. 110.123, F.S.; requiring
  4         provision of a comprehensive indemnity dental
  5         plan providing unrestricted enrollee access to
  6         dentists; providing an effective date.
  7
  8  Be It Enacted by the Legislature of the State of Florida:
  9
10         Section 1.  Paragraph (g) of subsection (3) of section
11  110.123, Florida Statutes, is amended to read:
12         110.123  State group insurance program.--
13         (3)  STATE GROUP INSURANCE PROGRAM.--
14         (g)1.  A person eligible to participate in the state
15  group insurance program may be authorized by rules adopted by
16  the department, in lieu of participating in the state group
17  health insurance plan, to exercise an option to elect
18  membership in a health maintenance organization plan which is
19  under contract with the state in accordance with criteria
20  established by this section and by said rules.  The offer of
21  optional membership in a health maintenance organization plan
22  permitted by this paragraph may be limited or conditioned by
23  rule as may be necessary to meet the requirements of state and
24  federal laws.
25         2.  The department shall contract with health
26  maintenance organizations seeking to participate in the state
27  group insurance program through a request for proposal or
28  other procurement process, as developed by the Department of
29  Management Services and determined to be appropriate.
30         a.  The department shall establish a schedule of
31  minimum benefits for health maintenance organization coverage,
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    Florida House of Representatives - 2000                 HB 549
    590-148-00
  1  and that schedule shall include: physician services; inpatient
  2  and outpatient hospital services; emergency medical services,
  3  including out-of-area emergency coverage; diagnostic
  4  laboratory and diagnostic and therapeutic radiologic services;
  5  mental health, alcohol, and chemical dependency treatment
  6  services meeting the minimum requirements of state and federal
  7  law; skilled nursing facilities and services; prescription
  8  drugs; and other benefits as may be required by the
  9  department.  Additional services may be provided subject to
10  the contract between the department and the HMO.
11         b.  The department may establish uniform deductibles,
12  copayments, or coinsurance schedules for all participating HMO
13  plans.
14         c.  The department may require detailed information
15  from each health maintenance organization participating in the
16  procurement process, including information pertaining to
17  organizational status, experience in providing prepaid health
18  benefits, accessibility of services, financial stability of
19  the plan, quality of management services, accreditation
20  status, quality of medical services, network access and
21  adequacy, performance measurement, ability to meet the
22  department's reporting requirements, and the actuarial basis
23  of the proposed rates and other data determined by the
24  director to be necessary for the evaluation and selection of
25  health maintenance organization plans and negotiation of
26  appropriate rates for these plans.  Upon receipt of proposals
27  by health maintenance organization plans and the evaluation of
28  those proposals, the department may enter into negotiations
29  with all of the plans or a subset of the plans, as the
30  department determines appropriate. Nothing shall preclude the
31  department from negotiating regional or statewide contracts
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    Florida House of Representatives - 2000                 HB 549
    590-148-00
  1  with health maintenance organization plans when this is
  2  cost-effective and when the department determines that the
  3  plan offers high value to enrollees.
  4         d.  The department may limit the number of HMOs that it
  5  contracts with in each service area based on the nature of the
  6  bids the department receives, the number of state employees in
  7  the service area, or any unique geographical characteristics
  8  of the service area. The department shall establish by rule
  9  service areas throughout the state.
10         e.  All persons participating in the state group
11  insurance program who are required to contribute towards a
12  total state group health premium shall be subject to the same
13  dollar contribution regardless of whether the enrollee enrolls
14  in the state group health insurance plan or in an HMO plan.
15         3.  The division is authorized to negotiate and to
16  contract with specialty psychiatric hospitals for mental
17  health benefits, on a regional basis, for alcohol, drug abuse,
18  and mental and nervous disorders. The division may establish,
19  subject to the approval of the Legislature pursuant to
20  subsection (5), any such regional plan upon completion of an
21  actuarial study to determine any impact on plan benefits and
22  premiums.
23         4.  In addition to contracting pursuant to subparagraph
24  2., the department shall enter into contract with any HMO to
25  participate in the state group insurance program which:
26         a.  Serves greater than 5,000 recipients on a prepaid
27  basis under the Medicaid program;
28         b.  Does not currently meet the 25 percent
29  non-Medicare/non-Medicaid enrollment composition requirement
30  established by the Department of Health excluding participants
31  enrolled in the state group insurance program;
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  1         c.  Meets the minimum benefit package and copayments
  2  and deductibles contained in sub-subparagraphs 2.a. and b.;
  3         d.  Is willing to participate in the state group
  4  insurance program at a cost of premiums that is not greater
  5  than 95 percent of the cost of HMO premiums accepted by the
  6  department in each service area; and
  7         e.  Meets the minimum surplus requirements of s.
  8  641.225.
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10  The department is authorized to contract with HMOs that meet
11  the requirements of sub-subparagraphs a. through d. prior to
12  the open enrollment period for state employees.  The
13  department is not required to renew the contract with the HMOs
14  as set forth in this paragraph more than twice. Thereafter,
15  the HMOs shall be eligible to participate in the state group
16  insurance program only through the request for proposal
17  process described in subparagraph 2.
18         5.  All enrollees in the state group health insurance
19  plan or any health maintenance organization plan shall have
20  the option of changing to any other health plan which is
21  offered by the state within any open enrollment period
22  designated by the department. Open enrollment shall be held at
23  least once each calendar year.
24         6.  When a contract between a treating provider and the
25  state-contracted health maintenance organization is terminated
26  for any reason other than for cause, each party shall allow
27  any enrollee for whom treatment was active to continue
28  coverage and care when medically necessary, through completion
29  of treatment of a condition for which the enrollee was
30  receiving care at the time of the termination, until the
31  enrollee selects another treating provider, or until the next
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  1  open enrollment period offered, whichever is longer, but no
  2  longer than 6 months after termination of the contract. Each
  3  party to the terminated contract shall allow an enrollee who
  4  has initiated a course of prenatal care, regardless of the
  5  trimester in which care was initiated, to continue care and
  6  coverage until completion of postpartum care. This does not
  7  prevent a provider from refusing to continue to provide care
  8  to an enrollee who is abusive, noncompliant, or in arrears in
  9  payments for services provided. For care continued under this
10  subparagraph, the program and the provider shall continue to
11  be bound by the terms of the terminated contract. Changes made
12  within 30 days before termination of a contract are effective
13  only if agreed to by both parties.
14         7.  Any HMO participating in the state group insurance
15  program shall submit health care utilization and cost data to
16  the department, in such form and in such manner as the
17  division shall require, as a condition of participating in the
18  program.  The department shall enter into negotiations with
19  its contracting HMOs to determine the nature and scope of the
20  data submission and the final requirements, format, penalties
21  associated with noncompliance, and timetables for submission.
22  These determinations shall be adopted by rule.
23         8.  The department may establish and direct, with
24  respect to collective bargaining issues, a comprehensive
25  package of insurance benefits that may include supplemental
26  health and life coverage, dental care, long-term care, vision
27  care, and other benefits it determines necessary to enable
28  state employees to select from among benefit options that best
29  suit their individual and family needs.
30         a.  Based upon a desired benefit package, the
31  department shall issue a request for proposal for health
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    Florida House of Representatives - 2000                 HB 549
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  1  insurance providers interested in participating in the state
  2  group insurance program, and the division shall issue a
  3  request for proposal for insurance providers interested in
  4  participating in the non-health-related components of the
  5  state group insurance program.  The division shall issue a
  6  request for proposal for a comprehensive indemnity dental plan
  7  which offers enrollees with a completely unrestricted choice
  8  of dentists. Upon receipt of all proposals, the department may
  9  enter into contract negotiations with insurance providers
10  submitting bids or negotiate a specially designed benefit
11  package. Insurance providers offering or providing
12  supplemental coverage as of May 30, 1991, which qualify for
13  pretax benefit treatment pursuant to s. 125 of the Internal
14  Revenue Code of 1986, with 5,500 or more state employees
15  currently enrolled may be included by the department in the
16  supplemental insurance benefit plan established by the
17  department without participating in a request for proposal,
18  submitting bids, negotiating contracts, or negotiating a
19  specially designed benefit package. These contracts shall
20  provide state employees with the most cost-effective and
21  comprehensive coverage available; however, no state or agency
22  funds shall be contributed toward the cost of any part of the
23  premium of such supplemental benefit plans. With respect to
24  dental coverage, the state group insurance program shall offer
25  a comprehensive indemnity dental plan providing enrollees with
26  a completely unrestricted choice of dentists.  If a dental
27  plan is endorsed, or in some manner recognized as the
28  preferred product, such endorsement or recognition shall
29  include a comprehensive indemnity dental plan which provides
30  enrollees with a completely unrestricted choice of dentists.
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    Florida House of Representatives - 2000                 HB 549
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  1         b.  Pursuant to the applicable provisions of s.
  2  110.161, and s. 125 of the Internal Revenue Code of 1986, the
  3  department shall enroll in the pretax benefit program those
  4  state employees who voluntarily elect coverage in any of the
  5  supplemental insurance benefit plans as provided by
  6  sub-subparagraph a.
  7         c.  Nothing herein contained shall be construed to
  8  prohibit insurance providers from continuing to provide or
  9  offer supplemental benefit coverage to state employees as
10  provided under existing agency plans.
11         Section 2.  This act shall take effect upon becoming a
12  law.
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15                          HOUSE SUMMARY
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      Requires the state group insurance program to provide a
17    comprehensive indemnity dental plan providing enrollees
      with completely unrestricted access to dentists.
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