House Bill hb1303

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    Florida House of Representatives - 2002                HB 1303

        By Representative Detert






  1                      A bill to be entitled

  2         An act relating to the state group health

  3         insurance and prescription drug programs;

  4         creating s. 110.1229, F.S.; authorizing

  5         specified local governmental entities to apply

  6         for participation; providing eligibility

  7         requirements for enrollment; exempting the

  8         program from ss. 624.436-624.446, F.S.,

  9         relating to multiple-employer welfare

10         arrangements; authorizing the Department of

11         Management Services to adopt rules; providing a

12         declaration that the act fulfills important

13         state interest; providing an effective date.

14

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

16

17         Section 1.  Section 110.1229, Florida Statutes, is

18  created to read:

19         110.1229  Participation by medium-sized counties,

20  medium-sized municipalities, and district school boards

21  located in medium-sized counties.--

22         (1)  As used in this section, the term:

23         (a)  "District school board" means a district school

24  board located in a medium-sized county.

25         (b)  "Medium-sized county" means a county that has a

26  population of 500,000 or fewer according to the most recent

27  decennial census.

28         (c)  "Medium-sized municipality" means an incorporated

29  municipality that has a population of between 12,500 and

30  50,000 according to the most recent decennial census.

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    Florida House of Representatives - 2002                HB 1303

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  1         (2)  The governing body of a medium-sized county or

  2  medium-sized municipality or a district school board may apply

  3  for participation in the state group health insurance program

  4  authorized in s. 110.123 and the prescription drug coverage

  5  program authorized by s. 110.12315 by submitting an

  6  application along with a $500 nonrefundable fee to the

  7  department.

  8         (3)  Any costs or savings to the state group health

  9  insurance program or the prescription drug coverage program

10  resulting from such participation shall be passed on to the

11  local government participants and their employees.  Such costs

12  or savings shall be delineated based on the impact to the

13  state, state officers and employees, and local government

14  employers and their employees.

15         (4)  As a prerequisite to the adoption of an ordinance

16  or resolution for participation in the state group health

17  insurance program and prescription drug coverage program, a

18  medium-sized county, medium-sized municipality, or district

19  school board shall issue a request for proposals to provide

20  health insurance and prescription drug coverage. Such request

21  for proposals shall seek coverages equivalent to those offered

22  currently by the medium-sized county, medium-sized

23  municipality, or district school board and coverages

24  equivalent to the state group health insurance program and

25  prescription drug coverage program. Such request for proposals

26  must provide an opportunity for the receipt of competitive

27  proposals from all interested parties without restriction. The

28  medium-sized county, medium-sized municipality, and district

29  school board shall review and consider all responsive

30  proposals prior to the adoption of any ordinance or resolution

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    Florida House of Representatives - 2002                HB 1303

    724-135-02






  1  for participation in the state group health insurance program

  2  and prescription drug coverage program.

  3         (5)  If the department determines that a medium-sized

  4  county, medium-sized municipality, or district school board is

  5  eligible to enroll, the medium-sized county, medium-sized

  6  municipality, or district school board must agree to the

  7  following terms and conditions:

  8         (a)  The minimum enrollment or contractual period will

  9  be 3 years.

10         (b)  The medium-sized county, medium-sized

11  municipality, or district school board must pay to the

12  department an initial administrative fee of not less than

13  $2.61 per enrollee per month, or such other amount established

14  annually to fully reimburse the department for its costs.

15         (c)  Termination of participation of a medium-sized

16  county, medium-sized municipality, or district school board

17  requires written notice 1 year before the termination date.

18         (d)  If participation is terminated, a medium-sized

19  county, medium-sized municipality, or district school board

20  may not reapply for participation for a period of 2 years.

21         (e)  Medium-sized counties, medium-sized

22  municipalities, and district school boards shall reimburse the

23  state for 100 percent of its costs, including administrative

24  costs.

25         (f)  If a medium-sized county, medium-sized

26  municipality, or district school board employer fails to make

27  the payments required by this section to fully reimburse the

28  state, the Department of Revenue or the Department of Banking

29  and Finance shall, upon the request of the Department of

30  Management Services, deduct the amount owed by the employer

31  from any funds not pledged to bond debt service satisfaction

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    Florida House of Representatives - 2002                HB 1303

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  1  that are to be distributed by it to the medium-sized county,

  2  medium-sized municipality, or district school board. The

  3  amounts so deducted shall be transferred to the Department of

  4  Management Services for further distribution to the trust

  5  funds in accordance with this chapter.

  6         (g)  The medium-sized county, medium-sized

  7  municipality, or district school board shall furnish the

  8  department any information requested by the department which

  9  the department considers necessary to administer the state

10  group health insurance program and the prescription drug

11  coverage program.

12         (h)  The medium-sized county, medium-sized

13  municipality, or district school board shall adopt the state's

14  eligibility rules.

15         (i)  The medium-sized county, medium-sized

16  municipality, or district school board may not participate in

17  the state's cafeteria plan that allows for pretax treatment of

18  premium contributions.  If pretax treatment is desirable for

19  employees of these participating employers, each employee of a

20  participating employer shall execute a salary reduction

21  agreement with that employer, and each participating employer

22  shall establish its own cafeteria plan.

23         (j)  The medium-sized county, medium-sized

24  municipality, or district school board shall pay monthly

25  premiums in amounts sufficient to cover claims costs,

26  department administrative costs, and third-party

27  administrative costs and provide for adequate reserves and

28  cash flow by contributing 3 months' premiums and costs in

29  advance of the coverage effective date.

30         (6)  The provisions of ss. 624.436-624.446 do not apply

31  to the State Group Insurance Program or to this section.

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    Florida House of Representatives - 2002                HB 1303

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  1         (7)  The Department of Management Services may adopt

  2  rules necessary to administer this section.

  3         Section 2.  The Legislature finds that a proper and

  4  legitimate state purpose is served when public employers, and

  5  their employees and dependents, in medium-sized counties,

  6  medium-sized municipalities, and district school boards

  7  located in such counties are given additional choices for the

  8  basic protections afforded by group health and prescription

  9  drug coverage programs that also permit the continued

10  operation of a competitive marketplace and ensure that

11  affordable and available coverage is extended to all

12  interested parties. Therefore, the Legislature determines and

13  declares that this act fulfills an important state interest.

14         Section 3.  This act shall take effect July 1, 2002,

15  and shall apply to eligible local government plan participants

16  effective with the January 1, 2004, plan year.

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18            *****************************************

19                          HOUSE SUMMARY

20
      Authorizes medium-sized counties and municipalities, and
21    district school boards located in medium-sized counties,
      to participate in the state group health insurance and
22    prescription drug programs, as currently provided for
      small counties, municipalities, and district school
23    boards.

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