Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. CS for SB 1660
Barcode 074476
CHAMBER ACTION
Senate House
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11 The Committee on Ways and Means (Fasano) recommended the
12 following amendment:
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14 Senate Amendment
15 On page 15, line 15, through
16 page 16, line 6, delete those lines
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18 and insert:
19 (b)1. Sources of additional revenue.--One-half of the
20 Any deficit incurred by the plan shall be primarily funded
21 through amounts appropriated by the Legislature from general
22 revenue sources, including, but not limited to, a portion of
23 the annual growth in existing net insurance premium taxes, and
24 one-half of the deficit shall be funded by assessments on
25 insurers. The board shall operate the plan in such a manner
26 that the estimated cost of providing health insurance during
27 any fiscal year will not exceed total income the plan expects
28 to receive from policy premiums, funds assessed, and funds
29 appropriated by the Legislature, including any interest on
30 investments. After determining the amount of funds available
31 appropriated to the board for a fiscal year, the board shall
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Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. CS for SB 1660
Barcode 074476
1 estimate the number of new policies it believes the plan has
2 the financial capacity to insure during that year so that
3 costs do not exceed income. The board shall take steps
4 necessary to ensure that plan enrollment does not exceed the
5 number of residents it has estimated it has the financial
6 capacity to insure.
7 2. As a condition of doing business in this state, an
8 insurer shall pay an assessment to the board in the amount
9 prescribed by this paragraph. Each insurer shall annually be
10 assessed by the board a percentage of the insurer's earned
11 premium pertaining to direct writings of health insurance in
12 the state during the calendar year preceding that for which
13 the assessment is levied. Such percentage shall equal the
14 percentage that the amount appropriated by the Legislature for
15 funding the deficit incurred by the plan for the upcoming
16 fiscal year represents of all earned premium pertaining to
17 direct writings of health insurance in the state during the
18 calendar year preceding that for which the assessment is
19 levied.
20 3. The total of all assessments under this paragraph
21 upon an insurer may not exceed 0.3 percent of such insurer's
22 health insurance premium earned in this state during the
23 calendar year preceding the year for which the assessments
24 were levied.
25 4. All rights, title, and interest in the assessment
26 funds collected under this paragraph shall vest in this state.
27 However, all such funds and interest earned shall be used by
28 the plan to pay claims and administrative expenses.
29 (c) If assessments, appropriations, and other receipts
30 by the plan, board, or plan administrator exceed the actual
31 losses and administrative expenses of the plan, the excess
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Florida Senate - 2005 COMMITTEE AMENDMENT
Bill No. CS for SB 1660
Barcode 074476
1 shall be held in interest and used by the board to offset
2 future losses. As used in this subsection, the term "future
3 losses" including reserves for claims incurred but not
4 reported.
5 (d) Each insurer's assessment shall be determined
6 annually by the board or plan administrator based on annual
7 statements and other reports deemed necessary by the board or
8 plan administrator and filed with the board or plan
9 administrator by the insurer.
10 (e) Insurers may recover the assessment in the normal
11 course of their respective businesses by including the
12 percentage, as indicated in subparagraph (b)2., as a claim
13 cost in determining rates.
14 (f) In the event of inadequate funding, the board may
15 cancel existing policies on a nondiscriminatory basis as
16 necessary to remedy the situation. No policy may be canceled
17 if a covered individual is currently making a claim.
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