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



                                                   HOUSE AMENDMENT

                                      Bill No. CS/HB 913, 1st Eng.

    Amendment No. ___ (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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  4  ______________________________________________________________

  5                                           ORIGINAL STAMP BELOW

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10  ______________________________________________________________

11  Representative(s) Sobel offered the following:

12

13         Amendment (with directory language and title

14  amendments) 

15         On page 8, line 6, through page 12, line 16,

16  remove:  all of said lines,

17

18  and insert:

19         (b)1.  Each small employer carrier issuing new health

20  benefit plans shall offer to any small employer, upon request,

21  a standard health benefit plan and a basic health benefit plan

22  that meets the criteria set forth in this section.

23         2.  For purposes of this subsection, the terms

24  "standard health benefit plan" and "basic health benefit plan"

25  mean policies or contracts that a small employer carrier

26  offers to eligible small employers that contain:

27         a.  An exclusion for services that are not medically

28  necessary or that are not covered preventive health services;

29  and

30         b.  A procedure for preauthorization by the small

31  employer carrier, or its designees.

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                                                   HOUSE AMENDMENT

                                      Bill No. CS/HB 913, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1         3.  A small employer carrier may include the following

  2  managed care provisions in the policy or contract to control

  3  costs:

  4         a.  A preferred provider arrangement or exclusive

  5  provider organization or any combination thereof, in which a

  6  small employer carrier enters into a written agreement with

  7  the provider to provide services at specified levels of

  8  reimbursement or to provide reimbursement to specified

  9  providers. Any such written agreement between a provider and a

10  small employer carrier must contain a provision under which

11  the parties agree that the insured individual or covered

12  member has no obligation to make payment for any medical

13  service rendered by the provider which is determined not to be

14  medically necessary.  A carrier may use preferred provider

15  arrangements or exclusive provider arrangements to the same

16  extent as allowed in group products that are not issued to

17  small employers.

18         b.  A procedure for utilization review by the small

19  employer carrier or its designees.

20

21  This subparagraph does not prohibit a small employer carrier

22  from including in its policy or contract additional managed

23  care and cost containment provisions, subject to the approval

24  of the department, which have potential for controlling costs

25  in a manner that does not result in inequitable treatment of

26  insureds or subscribers.  The carrier may use such provisions

27  to the same extent as authorized for group products that are

28  not issued to small employers.

29         4.  The standard health benefit plan and any flexible

30  benefit policy or contract shall include:

31         a.  Coverage for inpatient hospitalization;

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                                                   HOUSE AMENDMENT

                                      Bill No. CS/HB 913, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1         b.  Coverage for outpatient services;

  2         c.  Coverage for newborn children pursuant to s.

  3  627.6575;

  4         d.  Coverage for child care supervision services

  5  pursuant to s. 627.6579;

  6         e.  Coverage for adopted children upon placement in the

  7  residence pursuant to s. 627.6578;

  8         f.  Coverage for mammograms pursuant to s. 627.6613;

  9         g.  Coverage for handicapped children pursuant to s.

10  627.6615;

11         h.  Emergency or urgent care out of the geographic

12  service area; and

13         i.  Coverage for services provided by a hospice

14  licensed under s. 400.602 in cases where such coverage would

15  be the most appropriate and the most cost-effective method for

16  treating a covered illness.

17         5.  The standard health benefit plan and the basic

18  health benefit plan may include a schedule of benefit

19  limitations for specified services and procedures.  If the

20  committee develops such a schedule of benefits limitation for

21  the standard health benefit plan or the basic health benefit

22  plan, a small employer carrier offering the plan must offer

23  the employer an option for increasing the benefit schedule

24  amounts by 4 percent annually.

25         6.  The basic health benefit plan shall include all of

26  the benefits specified in subparagraph 4.; however, the basic

27  health benefit plan shall place additional restrictions on the

28  benefits and utilization and may also impose additional cost

29  containment measures.

30         7.  Sections 627.419(2), (3), and (4), 627.6574,

31  627.6612, 627.66121, 627.66122, 627.6616, 627.6618, 627.668,

                                  3

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                                                   HOUSE AMENDMENT

                                      Bill No. CS/HB 913, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  627.66911, 627.4239, 627.65755, 627.6691, 627.4232, 627.42395,

  2  627.65745, and 627.6619 apply to the standard health benefit

  3  plan, to any flexible benefit policy or contract, and to the

  4  basic health benefit plan. However, notwithstanding said

  5  provisions, the plans may specify limits on the number of

  6  authorized treatments, if such limits are reasonable and do

  7  not discriminate against any type of provider.

  8         8.  Each small employer carrier that provides for

  9  inpatient and outpatient services by allopathic hospitals may

10  provide as an option of the insured similar inpatient and

11  outpatient services by hospitals accredited by the American

12  Osteopathic Association when such services are available and

13  the osteopathic hospital agrees to provide the service.

14         (c)  If a small employer rejects, in writing, the

15  standard health benefit plan and the basic health benefit

16  plan, the small employer carrier may offer the small employer

17  a flexible limited benefit policy or contract.

18         (d)1.  Upon offering coverage under a standard health

19  benefit plan, a basic health benefit plan, or a flexible

20  limited benefit policy or contract for any small employer, the

21  small employer carrier shall disclose in writing to the

22  provide such employer group with a written statement that

23  contains, at a minimum:

24         a.  An explanation of those mandated benefits and

25  providers that are not covered by the policy or contract;

26         a.b.  An outline of coverage together explanation of

27  the managed care and cost control features of the policy or

28  contract, along with all appropriate mailing addresses and

29  telephone numbers to be used by insureds in seeking

30  information or authorization.; and

31         b.c.  An explanation of The primary and preventive care

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                                                   HOUSE AMENDMENT

                                      Bill No. CS/HB 913, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  features of the policy or contract.

  2

  3  Such disclosure statement must be presented in a clear and

  4  understandable form and format and must be separate from the

  5  policy or certificate or evidence of coverage provided to the

  6  employer group.

  7         2.  Before a small employer carrier issues a standard

  8  health benefit plan, a basic health benefit plan, or a limited

  9  benefit policy or contract, it must obtain from the

10  prospective policyholder a signed written statement in which

11  the prospective policyholder:

12         a.  Certifies as to eligibility for coverage under the

13  standard health benefit plan, basic health benefit plan, or

14  limited benefit policy or contract;

15         c.b.  Acknowledges The limited nature of the coverage

16  and an understanding of the managed care and cost control

17  features of the policy or contract.;

18         c.  Acknowledges that if misrepresentations are made

19  regarding eligibility for coverage under a standard health

20  benefit plan, a basic health benefit plan, or a limited

21  benefit policy or contract, the person making such

22  misrepresentations forfeits coverage provided by the policy or

23  contract; and

24         2.d.  If a flexible benefit policy or contract limited

25  plan is requested, the prospective policyholder must

26  acknowledge in writing acknowledges that he or she the

27  prospective policyholder had been offered, at the time of

28  application for the insurance policy or contract, the

29  opportunity to purchase any health benefit plan offered by the

30  carrier and that the prospective policyholder had rejected

31  that coverage.

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                                                   HOUSE AMENDMENT

                                      Bill No. CS/HB 913, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1

  2  A copy of such written statement shall be provided to the

  3  prospective policyholder no later than at the time of delivery

  4  of the policy or contract, and the original of such written

  5  statement shall be retained in the files of the small employer

  6  carrier for the period of time that the policy or contract

  7  remains in effect or for 5 years, whichever period is longer.

  8         3.  Any material statement made by an applicant for

  9  coverage under a health benefit plan which falsely certifies

10  as to the applicant's eligibility for coverage serves as the

11  basis for terminating coverage under the policy or contract.

12         3.4.  Each marketing communication that is intended to

13  be used in the marketing of a health benefit plan in this

14  state must be submitted for review by the department prior to

15  use and must contain the disclosures stated in this

16  subsection.

17         4.  The contract, policy, and certificates evidencing

18  coverage under a flexible benefit policy or contract and the

19  application for coverage under such plans must state in not

20  less than 12-point bold type on the first page in contrasting

21  color the following:  "The benefits provided by this health

22  plan are limited and may not cover all of your medical needs.

23  You should carefully review the benefits offered under this

24  health plan."

25         (e)  A small employer carrier may not use any policy,

26  contract, form, or rate under this section, including

27  applications, enrollment forms, policies, contracts,

28  certificates, evidences of coverage, riders, amendments,

29  endorsements, and disclosure forms, until the carrier insurer

30  has filed it with the department and the department has

31  approved it under ss. 627.410, and 627.411, and 641.31 and

                                  6

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    hmo0011                     12:56 pm         00913-0100-860017




                                                   HOUSE AMENDMENT

                                      Bill No. CS/HB 913, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  this section.

  2         (f)  A flexible benefit policy or contract must have an

  3  annual maximum benefit of $150,000 or greater and a lifetime

  4  benefit of $500,000 or greater and such benefit shall be

  5  disclosed in 12-point bold type in contrasting color.

  6         (15)  APPLICABILITY OF OTHER STATE LAWS.--

  7         (a)  Except as expressly provided in this section, a

  8  law requiring coverage for a specific health care service or

  9  benefit, or a law requiring reimbursement, utilization, or

10  consideration of a specific category of licensed health care

11  practitioner, does not apply to a standard or basic health

12  benefit plan policy or contract or a flexible limited benefit

13  policy or contract offered or delivered to a small employer

14  unless that law is made expressly applicable to such policies

15  or contracts. A law restricting or limiting deductibles,

16  coinsurance, copayments, or annual or lifetime maximum

17  payments does not apply to any health plan policy, including a

18  standard or basic health benefit plan policy or contract or a

19  flexible benefit policy or contract, offered or delivered to a

20  small employer unless such law is made expressly applicable to

21  such policy or contract. When any flexible benefit health

22  insurance policy or flexible benefit contract provides for the

23  payment for medical expense benefits or procedures, such

24  policy or contract shall be construed to include payment to a

25  licensed physician who provides the medical service benefits

26  or procedures which are within the scope of a licensed

27  physician's license. Any limitation or condition placed upon

28  payment to, or upon services, diagnosis, or treatment by, any

29  licensed physician shall apply equally to all licensed

30  physicians without unfair discrimination to the usual and

31  customary treatment procedures of any class of physicians.

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                                                   HOUSE AMENDMENT

                                      Bill No. CS/HB 913, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1         (b)  Except as provided in this section, a standard or

  2  basic health benefit plan policy or contract or flexible

  3  limited benefit policy or contract offered to a small employer

  4  is not subject to any provision of this code which:

  5         1.  Inhibits a small employer carrier from contracting

  6  with providers or groups of providers with respect to health

  7  care services or benefits;

  8         2.  Imposes any restriction on a small employer

  9  carrier's ability to negotiate with providers regarding the

10  level or method of reimbursing care or services provided under

11  a health benefit plan; or

12         3.  Requires a small employer carrier to either include

13  a specific provider or class of providers when contracting for

14  health care services or benefits or to exclude any class of

15  providers that is generally authorized by statute to provide

16  such care.

17         (c)  Any second tier assessment paid by a carrier

18  pursuant to paragraph (11)(j) may be credited against

19  assessments levied against the carrier pursuant to s.

20  627.6494.

21         (d)  Notwithstanding chapter 641, a health maintenance

22  organization is authorized to issue contracts providing

23  benefits to a small employer equal to the standard health

24  benefit plan, the basic health benefit plan, and the flexible

25  limited benefit policy authorized by this section.  Flexible

26  benefit policies shall contain all group health provisions

27  required under chapter 641.

28

29

30  == D I R E C T O R Y   L A N G U A G E   A M E N D M E N T ==

31  And the directory language is amended as follows:

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                                                   HOUSE AMENDMENT

                                      Bill No. CS/HB 913, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1         On page 2, lines 13-16,

  2  remove:  all of said lines,

  3

  4  and insert:  (b) of subsection (6), and subsections (12) and

  5  (15) of section 627.6699, Florida Statutes, are amended to

  6  read:

  7

  8

  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 11, after the semicolon,

12

13  insert:

14         revising certain disclosure requirements;

15         providing additional notice requirements;

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